FESCO reports 4% increase in year end net profit

May 20, 2021

Future Energy Source Company Limited (FESCO) recorded a 1% decline in revenue to $5.85 billion from $5.94 billion reported for the corresponding period in 2020. For the quarter, the Company recorded revenues of $1.51 billion (2020: $1.36 billion), representing a 1% increase.

Cost of sales for the year ended March 31, 2021 fell by 2% to close at $5.66 billion (2020: $5.76 billion), leading to a gross profit of $191.59 million (2020: $178.34 million). Within the quarter, FESCO recorded cost of sales of $1.46 billion, up 10% relative to $1.32 billion booked in the same quarter last year. As such, fourth quarter’s gross profit totaled $49.66 million, reflecting an increase of 22% year over year (2020: $40.59 million).

Selling and Administrative expenses amounted to $59.49 million, a 10% increase relative to $54.04 million reported in 2020. Whereas Impairment losses on financial assets grew by 55% to close at $755,574 (2020: $487,423).

This resulted in an operating profit of $131.34 million for the year end compared to an operating profit of $123.81 million documented for the comparable period in 2020. For the quarter, operating profit amounted to $48.14 million relative to operating profit of $31.05 million recorded in the prior corresponding quarter.

Finance income fell by 27% to close at $9.43 million versus the $12.99 million booked twelve months earlier.

Consequently, FESCO recorded profit before tax of $140.77 million compared to pre-tax profit of $136.80 million for the same period last year.  Pretax profit for the quarter closed at $48.54 million compared to profit before tax of $41.40 million in the previous comparable quarter.

The Company incurred taxes of $31.71 million (2020: $32.02 million) for the period under review, resulting in net profit of $109.06 million versus the $104.77 million booked twelve months earlier. For the quarter, the Company recorded a net profit of $38.14 million compared to a profit of $31.32 million for the corresponding quarter in 2020.

As a result, earnings per share (EPS) for the year end amounted to $0.044 compared to earnings per share (EPS) of $0.042 reported in 2020. For the quarter, the earnings per share totaled $0.015 relative to EPS of $0.013 in 2020. The number of shares used in our calculations is 2,500,000,000 units. FESCO stock last traded on May 19, 2021 at $1.06 with a corresponding P/E ratio of 24.30 times.


Balance Sheet at a glance:

FESCO, as at March 31, 2021, recorded ‘Total Assets’ of $550.95 million (2020: $473.88 million), a 16% increase year over year. The increase was attributed mainly to a 99% and 7% increase in ‘Property, Plant and Equipment’ and ‘Receivables’ which closed at $256.16 million (2020: $128.62 million) and $138.43 million (2020: $129.97 million), respectively.

Shareholders’ equity totaled $319.33 million (2020: $205.46 million), resulting in a book value per share of $0.13 (2020: $0.08).



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