Grenada Electricity Services Ltd.

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What it is

Grenada Electricity Services Limited is a publicly registered company in Grenada, engaged in the generation and supply of electricity across Grenada, Carriacou, and Petite Martinique. Known locally as Grenlec, it is the sole licensed electricity provider in the tri-island state, serving a customer base of more than 50,000 and providing integrated generation, transmission, and distribution services since 1960.

The company was incorporated on 27 September 1960 in Grenada. Its registered office and operational headquarters sit at Dusty Highway, Grand Anse, in the capital parish of St.

George’s.

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Who owns it

The Government of Grenada owns 71.4% of the ordinary share capital of the company as of 24 December 2020, while the National Insurance Scheme holds 11.6% — meaning state-related entities together control more than 83% of the company. The remaining roughly 17% is publicly traded on the ECSE, spread across more than 2,000 shareholders.

That majority-state structure is the result of a remarkable reversal. Through a US$63-million settlement, which was US$12 million less than an arbitration award, the government regained control of the 50% shareholding it had sold to WRB Enterprises of Tampa, Florida, in 1994.

Grenada had been ordered to pay US$74 million to the U.S. investors following a 2020 ICSID ruling, but a negotiated sum of US$63 million was paid in December 2020.

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Who runs it

Leroy A. E.

Abraham was appointed Grenlec’s Chief Executive Officer effective 1 October 2024. He is a chartered engineer and member of the Institution of Engineering and Technology, bringing 37 years of Caribbean utility experience, most recently as CEO of the BVI Electricity Corporation.

The board is chaired by James Pitt (MBA, BEng, C. Dir.), with Teddy St.

Louis (BSc, LLB) serving as Vice Chairman. The financial controller is Lydia Courtney-Francis, who also serves as company secretary.

No separate CFO title is disclosed in available sources.

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The money, in plain words

Grenlec remained profitable in 2024, but operating profit fell by more than 50% — from XCD 43.11 million (US$16.0 M) in 2023 to XCD 20.7 million (US$7.7 M) — and net profit dropped to XCD 7.6 million (US$2.8 M), down from XCD 21.29 million (US$7.9 M) in 2023. That means it kept about 6.9 cents of profit from every dollar of non-fuel sales in 2024 — a net margin of ~6.9%, compressed sharply from 21.4% in the prior year (our calculations).

Despite this, non-fuel dollar sales grew a record 10.52%, rising from XCD 99.26 million (US$36.8 M) in 2023 to XCD 109.70 million (US$40.6 M) in 2024; higher operating costs — rising from XCD 74.67 million to XCD 90.86 million — absorbed most of that revenue gain. The board responded to the profit decline by reducing the dividend from 40 cents per share to 32 cents per share.

Total assets at end-2023 stood at XCD 255.14 million (US$94.5 M), up XCD 18.47 million from the prior year — a balance sheet that reflects decades of investment in generation and grid infrastructure. The 2023 return on invested capital was 12%, a respectable number for a regulated island utility, though the 2024 profit slump will have pulled that figure lower.

The company is valued at about 27 times 2024 earnings — a premium that reflects its monopoly position rather than growth momentum.

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What it is doing now

Hurricane Beryl made landfall on Carriacou as a high-end Category 4 storm on 1 July 2024, causing total economic damage to Grenada estimated at US$218 million — about 16.5% of the country’s 2023 GDP. Grenlec’s grid bore the brunt.

The company received an insurance payout of US$9.32 million (approximately EC$25.1 million) from CCRIF to support repair of its transmission and distribution systems. Higher generation maintenance costs and rental of emergency units drove the sharp rise in operating expenses.

The company describes itself as being at a critical turning point, facing volatile diesel imports, ageing generation infrastructure, and growing customer-owned rooftop solar. New CEO Abraham — whose career was built managing a small-island grid through hurricane recovery and a renewable transition — was brought in precisely to navigate that shift.

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What to watch

• Renewable energy transition. Grenlec is nearly 100% diesel-powered; growing rooftop solar reduces the revenue base while fixed grid costs stay unchanged — a structural pressure every Caribbean utility now faces.
• Tariff reform. The average electricity charge rose only marginally to XCD $1.10 per kWh in 2023. Any regulator-approved tariff reset will determine whether margins recover.
• Hurricane exposure. Grenlec only joined the CCRIF parametric insurance programme in 2023. Beryl struck the following year; the adequacy of coverage for a bigger event remains an open question.
• Government ownership dynamics. With the state controlling 83% of equity and appointing the board, capital allocation decisions — particularly on renewable investment versus dividend payouts — will be shaped as much by policy as by commercial logic.
• 2024 financial statements. The full audited 2024 accounts, including a complete income statement and balance sheet, had not been published to primary sources at time of writing; the figures above derive from the 2024 Annual Report as reported by NOW Grenada.

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This is news, not investment advice.