3 weeks ago
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Future Sources Energy Company Limited, which trades as Fesco, will add at least four new service stations to the network by December 2026.
The investment will range from $700 million to $1 billion and will be financed from retained earnings and the undrawn portion of a construction loan from Scotiabank Jamaica.
The network currently comprises 22 stations that are mainly dealer operated, and Fesco also distributes liquid petroleum gas through its FesGas operation.
In June, the petroleum marketing company launched its second company-owned and operated service station, Fesco Oval, at Spanish Town Road, Kingston. It plans to open the convenience store, quick-service restaurants, and administrative offices at the location by year end.
In his report to shareholders at the company’s annual general meeting, Fesco CEO Jeremy Barnes described the past financial year ending March 2025 as “an excellent year operationally”, while citing a new record for gross profit. Net income for the year was $462 million, a 12 per cent increase over the previous year.
The June 2025 first quarter was mixed amid industry-wide margin contraction and falling fuel prices.
Revenue fell seven per cent to $7.23 billion, notwithstanding a more than three per cent improvement in the volume of fuel sold. Net profit also fell by six per cent to $139.4 million, reflecting increased expenses for the business that included spending on new LPG and service station assets, as well as early-stage development costs for new business ventures.
Barnes is projecting a resurgence in profit this year.
“I do believe that by December, we will be tracking ahead of last year, and you might be surprised at the numbers that we do. Starting with the quarter to end in just a few days, you should be pleased with how we are tracking,” he said, referencing the September quarter.
Fesco is paying a dividend of 2.8 cents per share, based on the FY2025 results. The distribution, totalling around $70 million, will be made in mid-December.
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