ST. LUCIA ELECTRICITY SERVICES LIMITED Notes to Financial Statements (Continued) December 31, 2010 (Expressed In Eastern Caribbean Dollars)
23.
Taxation (Cont’d) Reconciliation of the applicable tax charge to the effective tax charges: 2010
Profit before taxation
$
Tax at the statutory rate of 30% (2009 – 30%) Tax effect of income not subject to tax Tax effect of unadjusted differences Tax effect of difference in deferred tax computation Actual tax charge 24.
$
2009
(Restated)
40,357,825
38,966,462
12,107,348 (398,303 ) (104,585 ) (466,804 )
11,689,939 (433,045) (105,908) -
11,137,656
11,150,986
Fuel Price Hedging The underlying strategy and imperative related to the Company’s objective to reduce, in some measure, the price volatility to its customers caused by the existing arrangements whereby fuel is purchased on a regular basis at market prices. The Company has only been authorised to use Fixed Price Swaps in its programme during the period to cover the related contracts. The Board of Directors, as part of the hedging strategy, approved a full-fledged hedging program commencing January 2010 which currently covers the period up to December, 2011. Under the provisions of the Electricity Supply Act (as amended) 1994, fuel prices are passed through to customers at cost.
25.
Earnings Per Share Earnings per share have been calculated by dividing the profit for the year of $29,220,169 (2009 restated - $27,815,476) by the weighted average number of issued ordinary shares of 11,720,000 (2009 - 11,720,000).
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