August 15, 2023
Future Energy Source Company Limited (FESCO) for the first quarter ended June 30, 2023 reported a 2% increase in revenue totalling $6.56 billion compared to $6.46 billion in the corresponding first quarter last year.
Cost Of Goods Sold amounted to $6.22 billion (2022: $6.24 billion), this represents a decrease of 0.3% year over year. Consequently, gross profit increased by 57% to $338.63 million compared to $216.08 million for the first quarter ended June 30, 2022.
Operating and Administrative expenses increased by 110% to close at $136.57 million (2022: $65.05 million). FESCO noted, “This expansion of expenses directly reflects the expanded operations of the Company and remains relative to its earnings as measured by gross profits.”
Operating Profit for the first quarter amounted to $202.06 million, a 34% increase relative to $151.03 million reported in 2022. Finance Cost totalled $44.05 million an increase from the income reported in the corresponding period last year 2022: $759,567.
Profit Before Taxation for the first quarter ended June 30, 2023, amounted to $158.01 million, a 4% increase relative to $151.79 million reported in 2022.
No Taxation was recorded. Net profit for the first quarter amounted to $158.01 million, a 4% increase from the $151.79 million reported in 2022.
Consequently, Earnings Per Share for the first quarter amounted to $0.063 (2022: EPS: $0.061). The twelve-month trailing EPS was $0.23, and the number of shares used in these calculations was 2,500,000,000. Notably, FESCO’s stock price closed the trading period on August 14, 2023, at a price of $3.78 with a corresponding P/E ratio of 16.36x.
FESCO noted, “ The Company’s LPG operation is capital intensive as it relates to its fixed asset requirements to establish and fulfill the business’ services and operation. Accordingly, depreciation and interest expense will in the forming period outweigh their medium and long-term “weight” relative to gross profit. Staff costs, bank charges, advertising, insurance, and security continue to be our main expense items.”
Balance Sheet Highlights
FESCO, as at June 30, 2023, recorded ‘Total Assets’ of $4.29 billion (2022: $3.13 billion), a 37% increase year over year. The increase was attributed mainly to a 94% and 220% increase in ‘Property, Plant and Equipment’ and ‘Receivables’ which closed at $2.89 billion (2022: $1.49 billion) and $898.88 million (2022: $468.24 million), respectively.
Shareholder’s equity was $1.46 billion (2022: $922.38 million), representing a book value per share of $0.58 (2022: $0.37).
FESCO noted: “In July 2023 we opened our nineteenth (19th) retail service station FESCO Maypen (DODO).”
“In August we intend to open our twentieth service (20th) service station FESCO Kitson Town (DOCO) and in October we intend to open our twenty-first (21st) service station FESCO Port Maria (DODO). We hope that all our stations will continue to provide you our valued stakeholders with great fuelling opportunities and services.”
“Finally, the Company will continue to make investments in real assets and equipment to support expanding its service station businesses, its industrial client business, and LPG business”
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