Grenada Electricity Services Limited

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What it is

Grenlec generates, transmits, and distributes every unit of electricity used on the Caribbean islands of Grenada, Carriacou, and Petite Martinique. The company was created in 1960 and today serves a customer base of over 40,000 accounts, with around 235 employees delivering integrated electricity services — making it a textbook regulated monopoly utility.

It owns and operates one main generating station in Grenada with an installed capacity of 39 MW, a 1.92 MW station in Carriacou, and a 483 KW station in Petite Martinique. The grid is almost entirely diesel-powered today, which is exactly why management calls this a “critical turning point.”

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Who owns it

The Government of Grenada is now the controlling shareholder. Through a US$63 million settlement concluded in late December 2020, the government regained control of the 50% stake it had sold to Tampa, Florida-based WRB Enterprises in 1994.

It also acquired an additional 11.6% block of shares that WRB had held through an affiliate company.

Before the buyout, the picture was a classic Caribbean mixed-ownership structure: the Government of Grenada held 10%, the National Insurance Scheme (NIS) held 11%, and a broad base of over 1,800 Grenadian, regional, and other shareholders — including employees — held 29%. The government’s combined post-2020 stake (its original 10% plus the repurchased WRB block) gives it a clear majority; the ECSRC annual filing confirms the ownership structure remained unchanged since December 2020, with the Government of Grenada holding majority shares.

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Who runs it

In October 2024, Leroy A. E.

Abraham — a Chartered Engineer and former CEO of the British Virgin Islands Electricity Company (BVIEC) — was appointed Chief Executive Officer. The financial controller is Lydia Courtney-Francis, who also serves as company secretary.

Chairman James Pitt leads the board; Teddy St. Louis serves as Vice Chairman, appointed by the Ministry of Infrastructure.

The board as at 31 December 2024 comprised eight directors, including one elected by minority shareholders and one employees’ representative, reflecting the multi-stakeholder ownership structure.

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The money, in plain words

Grenlec had a bruising 2024. Sales grew — from XCD 99.26 (US$99)M to XCD 109.70M (USD 109.70M), a record non-fuel dollar sales increase of 10.52% — but the company simultaneously faced volatile diesel costs, aging generators, and the emergency cost of renting replacement capacity after Hurricane Beryl.

The result was a dramatic squeeze: it kept just under 7 cents of profit on every dollar of sales, a net margin of 6.9% (our calculation), compared to roughly 21% the year before.

Net profit fell to XCD 7.6M / USD 7.6M — down from XCD 21.29 (US$21)M in 2023, while operating profit collapsed from XCD 43.11 (US$43)M to XCD 20.7 (US$21)M. In response, the board cut the annual dividend from XCD 0.40 (US$0.40)to XCD 0.32 (US$0.32)per share — that is 32 cents per share paid to each of 19 million shares outstanding, a total payout of roughly XCD 6.08M / USD 6.08M (our calculation).

Retained earnings held up at XCD 64.8 (US$65)M, signalling the company is not distressed — just strained.

Operating costs, net of fuel, rose from XCD 74.67 (US$75)M to XCD 90.86 (US$91)M, driven by intensive generation maintenance and the rental of emergency units to stabilise supply. The one significant cushion: Grenlec received a parametric insurance payout of XCD 25.06 (US$25)M from the Caribbean Catastrophe Risk Insurance Facility (CCRIF) following Hurricane Beryl, which helped fund restoration.

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What it is doing now

Grenlec is pursuing a two-phase energy transition. Phase one centres on replacing aging diesel engines with a new dual-fuel plant primarily running on liquefied natural gas (LNG) — cleaner and cheaper than diesel — to be built by a private partner on the existing Queen’s Park site; the company issued a formal request for proposals to attract that investor.

Phase two is renewable power: in 2024 Grenlec joined a multi-agency project with the Government of Grenada and the World Bank to develop a utility-scale solar farm at Maurice Bishop International Airport, backed by a USD 18.5M World Bank loan plus additional Caribbean Development Bank financing.

Separately, the company is rolling out a new customer information system in 2025 to modernise billing and online access. As part of its corporate commitment, Grenlec contributes 5% of annual pre-tax profits to community initiatives covering education, energy efficiency, renewable energy, and social services.

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What to watch

• The LNG partner deal. Whether a credible private investor signs on to build and own the new gas plant will determine when — and at what cost — Grenlec escapes diesel dependency. No agreement has been announced.
• Tariff regulation. The 2016 Electricity Supply Act introduced a public regulator (PURC) that now sets tariff methodology. Any regulator decision on non-fuel rates directly controls revenue and margin.
• Hurricane exposure. Beryl cost the company roughly half its annual operating profit in one season. CCRIF insurance helped, but climate risk is structural for a small-island utility.
• Dividend sustainability. With net profit at XCD 7.6 (US$8)M and the dividend payout already at XCD 6.08 (US$6)M (our calculation), the payout ratio is above 80% — leaving little cushion for a second bad year without a further cut.
• Ownership overhang. The Government of Grenada holds a majority it acquired under financial duress. Whether it eventually sells shares via a public offering — as it signalled in 2020 — would reshape the free float and the stock’s liquidity on the ECSE.

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This is news, not investment advice.