November 14, 2022
Future Energy Source Company Limited (FESCO) reported $13.43 billion in turnover relative to the $4.33 billion reported in 2021, representing a 210% increase. For the second quarter FESCO recorded a 188% increase in revenue to $6.97 billion from $2.42 billion reported for the corresponding period in 2021.
Cost of sales amounted to $13.02 billion (2021: $4.20 billion) a 210% increase from the year prior; resulting in gross profits of $406.25 million (2021: $128.33 million). While cost of sales for the second quarter ended September 30, 2022 rose by 189% to close at $6.78 billion (2021: $2.35 billion), leading to a gross profit of $190.18 million (2021: $73.47 million), up 159% year over year.
Operating and administrative expenses amounted to $130.74 million (2021: $38.29 million). For the second quarter FESCO reported operating and administrative expenses of $65.70 million, a 270% increase relative to the $17.77 million reported in 2021.
For the six months period FESCO saw a 206% increase in operating profit, this amounted to $275.51 million (2021: 90.04 million). The Company reported operating profit of $124.48 million for the second quarter ended September 30, 2022, compared to $55.70 million documented for the comparable period in 2021.
For the six months ending September 30, 2022, FESCO recorded $5.57 million in finance income (2021: $7.11 million). Finance income for the three months closed at $4.81 million versus the $1.52 million booked for the previous corresponding quarter.
FESCO recorded profit before tax of $281.08 million (2021: $97.15 million). For the quarter FESCO recorded profit before tax of $129.29 million relative to pre-tax profit of $57.21 million for the same period last quarter.
FESCO incurred no tax for the period (2021: nil) resulting in net profit of $281.08 million versus the $97.15 million booked twelve months earlier. For the quarter ended September 30, 2022, net profit amounted to $129.29 million versus the $57.21 million booked twelve months earlier.
The earnings per share (EPS) for the six months ended September 30, 2022, amounted to $0.112 relative to the EPS of $0.039 reported in 2021. EPS for the second quarter ended September 30, 2022, amounted to $0.052 compared to the EPS of $0.023 reported in 2021. The number of shares used in our calculations is 2,500,000,000 units. The twelve months trailing EPS was $0.175. FESCO stock last traded on November 11, 2022, at $5.31 with a corresponding P/E ratio of 30.34 times.
Balance Sheet at a glance:
FESCO, as at September 30, 2022, recorded ‘Total Assets’ of $3.27 billion (2021: $1.27 million), a 156% increase year over year. The increase was attributed mainly to a 411% increase in ‘Property, Plant and Equipment’ which ended at $2.00 billion (2021: $390.71 million). Additionally, there was a 202% increase in ‘Inventories’, which totalled $69.93 million (2021: $23.13 million) and a 93% increase in ‘Cash and cash equivalents’ which amounted to $593.61 million (2021: $307.46 million).
Shareholders’ equity amounted to $1.05 billion for the period under review, a 65% increase when compared to the $639.10 million reported in 2021. This resulted in a book value per share of $0.42 (2021: $0.26).
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