to December 31, up 10.35 percent from 1995. Earnings per share surged from $3.04 to $3.31.

And utility officials are forecasting a relatively dramatic increase in the demand for electricity over the next few years.

But president and CEO, Garry Madeiros, noted that with the continuing success of the company's financial results, the lack of demand for Belco shares in the marketplace, was disappointing.

He said, "The share price has gone from $19.75 to $19.50 from December 1995 to December 1996. The profit has gone up, the dividends have gone up and the market price has gone down. The dividend yield is 6.6 percent.'' He conceded there may have been unhappiness with the Island's political situation in the recent past, and noted the definitive shift away from investment in the local stock market.

Belco Holdings' sparkling results come a day after the group announced a $1.5-million rebate to customers from their electricity subsidiary.

Mr. Madeiros expressed confidence for future growth and added, "You just look around at buildings going up and those on line to go up. Without even considering the ACE/EXEL building project, those in construction or agreed to include the PW's development, CedarBridge Academy, Mintflower Place, the Bank of Butterfield extension, American International, BUEI and more. There are also a lot more on the books.'' Operating revenue included electricity sales of nearly $108.3 million, less combined customer discounts of more than $4.6 million, for a total of $103.6 million.

Revenue also included receipts from gas operations through Bermuda Gas & Utility, net of the cost of the goods sold, of more than $4.5 million, against operational costs of $3.6 million, leaving a profit of nearly $950,000.

Belco Holdings are intending that all of their subsidiaries yield a return of more than 15 percent.

The energy conservation subsidiary, Besco, lost $720,447, but Mr. Madeiros admitted that it is still in its infancy stages.

He said, "The deficit is a little higher than we projected, but we knew from the beginning that it will take a while before the public gravitates to this.

We are trying to provide a plan to customers to show how they can change, reduce energy and cut costs.

"We wanted to begin with retro-fits on existing commercial buildings, showing existing companies how they can reduce their costs. We also figured that the owners of new buildings would have already factored-in energy saving schemes and we were not even trying to compete in that market.

"But what has transpired is that we have been finding ourselves more involved in the new developments.

"We are expecting that this part of the company will actually be profitable this year. People are beginning to see its value.'' Lost electricity sales to the base lands, once about five percent of total sales, have been made up through increased residential sales of 2.9 percent in 1995 and 3.8 percent in 1996. Large commercial sales, representing some 40 percent of total electricity sales, increased marginally (0.2 percent) over 1996, after rising 3.3 percent in 1995. But increases are expected as the new buildings come into use.

Belco reports record earnings Large commercial customers, or demand customers, number about 160 and do not include a large number of smaller commercial clients. All in all, the total of all commercial customers use about half of the power generated by Bermuda Electric Light Co.

Assets of Belco Holdings at year's end had risen nearly $15 million to $211,262,720. Cash and short term investments were up some $7.4 million to nearly $17.8 million.

"In the past,'' said Mr. Madeiros, "when we had cash, we always had debt if you look back ten years. We've been earning more profits and not investing as highly. Last year, we invested $17 million in new plant and equipment, but that compares to $30 million and $29 million and $20 million in some years in the past.

"We've consolidated our investment plans. The company generated cash of $33 million for the year and nearly $30 million the year before. Recently, we have not been spending the cash, so we were able to start building up for cash and short term investments.'' The company is preparing for its next significant plant expansion in about three years time and next year's maturation of a $12-million bond. A decision will have to be taken to either pay it off in cash, or finance it with debt by giving an opportunity for the public to invest in another debt instrument.

Current liabilities include accounts payable year-over-year change of about $7 million to almost $14.4 million in December. The excess liability represents a payment for fuel oil due in December that was paid over a ten-week period.

Belco buys $35 million in fuel over six shipments a year.