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Petroleum marketing company Future Energy Source Company Limited grew revenue by six per cent and profit by 21 per cent to hit new highs at the close of the September quarter.
Revenue rose to $8.39 billion, despite what CEO Jeremy Barnes referred to as a soft pricing environment in which fuel prices had fallen across all transportation segments. The growth in sales revenue resulted from a 10 per cent increase in volumes of fuel sold for the quarter.
Year to date, April-September, volume sales were up seven per cent.
Gross profit surged 23 per cent to $561 million for the July-September period, marking the first time the company has crossed the half-billion mark in a single quarter. Operating profit climbed nearly 22 per cent to $249 million, while EBITDA, or core earnings, rose 19 per cent to $317.5 million.
The gains were maintained at the bottom line with net profit climbing 21 per cent to $205.8 million, the best outturn in Fesco’s 12-year history, according to Barnes. At half-year, profit amounted to $345.2 million, and the fuel supplier is bullish on a good finish, saying the impact of Hurricane Melissa on its operations was limited and, on balance, might ultimately deliver positive financial results.
“The guidance today was that by the end of December we would have surpassed last year. Nine months would have exceeded what would have been last year’s 12 months,” Barnes said.
“Melissa has not interrupted us ... the momentum has not moved,” he said.
The Category 5 storm disrupted operations in the Fesco network for three days. The damage to company-owned stations and filling plants was minor and covered by insurance, Barnes said. By November 5, all but one station had reopened, and by mid-November, the full network was back online.
“Some dealers fared not as well, but repairs were mostly branding and canopy roofs. There was no structural damage,” Barnes said.
In terms of business, Melissa triggered new demand for gasolene and diesel as businesses and households switched to generators amid disruption of power supplies from the damaged national electricity grid.
“I do not expect the company to have slipped any at all. In fact, there might be an uptick in output for November and December,” Barnes said, noting that some service stations in the Fesco network have installed solar systems to maintain resilience.
The company expects to hit or exceed profit of half-billion dollars for the full fiscal year, ending March 2026, compared to FY2025 earnings of $461 million. But the chief executive later added a rider that the after-effects of the storm are still unfolding, nationally, and may temper expected outcomes
The marketing company’s expansion plans remain intact, with “one to three new dealer-operated stations expected before March 2026, and four to five additional stations targeted by December 2027,” Barnes told the Financial Gleaner, while declining to name the locations.
The company’s Fesco Oval project in Kingston is in its final stages. It includes a service station, which is already operational, administrative offices and other facilities.
“We believe the whole place will be finished before the end of January,” said Barnes.
English (US) ·