Ascendant bottom line hit by falling sales
The increased number of people leaving the Island and a drop off in trade for the international business and hospitality sectors has hit the Ascendant Group's bottom line, according to the company's six-month report.
The parent company of Belco, Bermuda Gas & Utility Company Ltd, PureNERGY Renewables Ltd, Belco Properties Ltd, InVenture Ltd and Sigma Corporate Services Company Ltd also said it was considering Government’s 2011 Bermuda Energy White Paper as it decided on its future investment in the energy sector.
In addition, the company is realigning its engineering group and has established a facilities management capability through the set up of iFM Ltd, a joint venture with Canadian firm Black & McDonald, enabling it to take part in public-private ventures in that field and to pursue new infrastructure developments in Bermuda via similar partnerships.
In his letter to shareholders also released today, Ascendant Group president and CEO Vince Ingham said that electricity sales and propane use were down in the current economic environment.
“Reduced sales in electricity at Bermuda Electric Light Company Ltd (BELCO) and decreased propane usage at Bermuda Gas & Utility Company Ltd are clear indicators of fewer residents on the Island, as well as reduced commercial activities in both our international business and hospitality sectors,” he said.
“These challenges have had a direct impact on our bottom line. The recently released 2011 Bermuda Energy White Paper, which sets out Government’s proposed direction and policy, is also being considered as we contemplate further investment in the energy sector. All of these matters will influence our future investment decisions, but they have also served as catalysts for change in our operating companies.”