February 15, 2023
Future Energy Source Company Limited (FESCO)
For the nine months ended December 31, 2022:-
Future Energy Source Company Limited (FESCO) reported $20.14 billion in turnover relative to the $8.01 billion reported in 2021, representing a 152% increase. For the third quarter FESCO recorded a 83% increase in revenue to $6.71 billion from $3.68 billion reported for the corresponding period in 2021.
Cost of sales amounted to $19.49 billion (2021: $7.76 billion) a 151% increase from the year prior; resulting in gross profits of $646.65 million (2021: $246 million). While cost of sales for the third quarter ended December 31, 2022 rose by 82% to close at $6.47 billion (2021: $3.56 billion), leading to a gross profit of $240.39 million (2021: $117.67 million), up 104% year over year.
Operating and administrative expenses amounted to $215.55 million (2021: $89.5 million). For the third quarter FESCO reported operating and administrative expenses of $84.81 million, a 65.6% increase relative to the $51.21 million reported in 2021.
For the nine months period FESCO saw a 175% increase in operating profit, this amounted to $431.1 million (2021: $156.5 million). The Company reported operating profit of $155.59 million for the third quarter ended December 31, 2022, compared to $66.46 million documented for the comparable period in 2021.
For the nine months ending December 31, 2022, FESCO recorded $3.3 million in finance income (2021: $14.29 million). Finance cost for the three months closed at $2.27 million versus finance income of $7.18 million booked for the previous corresponding quarter.
FESCO recorded profit before tax of $434.4 million (2021: $170.79 million). For the quarter FESCO recorded profit before tax of $153.32 million relative to pre-tax profit of $73.64 million for the same period last quarter.
FESCO incurred no tax for the period (2021: nil) resulting in net profit of $434.4 million versus the $170.79 million booked twelve months earlier. For the quarter ended December 31, 2022, net profit amounted to $153.32 million versus the $73.64 million booked twelve months earlier.
The earnings per share (EPS) for the nine months ended December 31, 2022, amounted to $0.17 relative to the EPS of $0.07 reported in 2021. EPS for the third quarter ended December 31, 2022, amounted to $0.061 compared to the EPS of $0.03 reported in 2021. The number of shares used in our calculations is 2,500,000,000 units. The twelve months trailing EPS was $0.207. FESCO stock last traded on February 14, 2022, at $4.64 with a corresponding P/E ratio of 22.43 times.
Balance Sheet at a glance:
FESCO, as at December 31, 2022, recorded ‘Total Assets’ of $4.13 billion (2021: $1.72 billion), a 140% increase year over year. The increase was attributed mainly to a 319% increase in ‘Property, Plant and Equipment’ which ended at $2.45 billion (2021: $584.29 million). Additionally, there was a 58% increase in ‘Receivables’, which totalled $933.61 million (2021: $592.71 million).
Shareholders’ equity amounted to $1.16 billion for the period under review, a 63% increase when compared to the $712.74 million reported in 2021. This resulted in a book value per share of $0.47 (2021: $0.29).
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