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Despite a 39 per cent increase in the volumes of gasolene sold during the June second quarter, Regency Petroleum Company Limited, RPL, recorded lower revenue.
But its earning did not disappoint, rising 36 per cent above the comparative period in 2024.
The petroleum marketing company reported revenue of $481.88 million, down 11 per cent from $430.35 million in the comparative June 2024 quarter. Regency said the decline can be attributed to falling petroleum prices.
“Our records show that [regarding] 90 octane gas for a similar period last year, we sold about 600,000 litres; and this year, for the similar quarter, it was more than 800,000 litres. That’s a difference of 200,000 litres per quarter,” CEO Andrew Williams told the Financial Gleaner, adding that the difference was even more stark in respect of 87 octane gas.
“For 87 octane I think it was like 400,000 litres for that quarter in 2024. It moved to about 700,000 litres – an even greater change,” Williams noted.
The greater volume of fuel sold was dispensed from the four service stations operated by Regency in the June quarter, whereas the network only had three stations a year ago. But falling oil prices on the world market has resulted in cheaper gas at the pump and, consequently, lower revenue for Regency.
Additionally, the fire that broke out on premises nearby, while sparing Regency’s gas station at Great Georges Street in Savanna-la-Mar, still impacted the business.
The gas station is in need of clean-up and is currently shuttered.
Prior to the opening of the Negril service station, Great Georges was a significant income earner for Regency.
“We were basically maintaining it as a sentimental location, to be honest with you. I would say, probably 10 per cent or 20 per cent of the sales at the Sav-la-Mar location would have been customers who did not go to Paradise or Negril, based on the route they travelled,” Williams said.
“It’s still missed, because of the antecedents of this. We actually started out there. We’re not saying we’re closed down fully, but at this time we cannot operate. The whole area is still polluted and it’s not safe for us to operate,” he said.
In the June quarter, Regency Petroleum booked a profit of $36 million, up 36 per cent from $26.48 million in the second quarter of 2024, notwithstanding the 11 per cent fall in revenue.
“The decrease in overall revenue was probably because of price-cutting ...,” Williams remarked.
As for the company’s most recent service station – at Trench Town in Kingston – Regency has been competing on price in order to grab market share.
Additionally, Regency has been positioning as the gas station with the best deal for public transport operators, especially taxis.
“We have that loyalty amongst the taxi operators. They have a discounted pump,” Williams said. It serves “all public passenger vehicles that purchase from us. It has a sign and it’s labelled at every location”, he said.
“The main objective is to show the support, because we know the importance of logistics and transportation. We want to try to make it easier for the general public to benefit from this,” he added.
The new Trench Town service station opened in December 2024. Despite initial hiccups, the location has been running ahead of projections by five to 10 per cent, Williams said.
Meanwhile, the truck stop being developed in conjunction with a partner at Crawford, St Elizabeth, is on track for its projected 2026 opening.
Regency Petroleum itself is getting ready to invest $180 million to $200 million in redeveloping the former Petcom service station at the Norman Manley Airport, and expects the facility to incorporate a fast-food franchise along with a convenience store. The location will also host an office for Regency Petroleum.
English (US) ·