August 13, 2021

Future Energy Source Company Limited (FESCO) recorded a 58% increase in revenue to $1.91 billion from $1.21 billion reported for the corresponding period in 2020. The Company noted, ” Several factors affect revenue/turnover with the supply price of fuel being a major component. FESCO has no control over the supply price of fuel and, instead, focuses more on quantity of fuel sold and gross profits.”

Cost of sales for the first quarter ended June 30, 2021 also rose 58% to close at $1.85 billion (2020: $1.17 billion), leading to a gross profit of $54.86 million (2020: $33.58 million), up 63% year over year.  

Operating and Administrative expenses amounted to $20.52 million, a 138% increase relative to $8.62 million reported in 2020. The movement was due to, “increases in advertising, professional and administrative expenses,” as per Management.

Despite the uptick, FESCO reported operating profit of $34.34 million for the first quarter ended June 30, 2021, compared to $24.95 million documented for the comparable period in 2020.  

Finance income for the three months ended June 30, 2021 increased 662% to close at $5.56 million versus the $734,666 booked for the previous corresponding quarter.

Consequently, FESCO recorded profit before tax of $39.94 million relative to pre-tax profit of $25.69 million for the same period last first quarter.

FESCO incurred no tax for the quarter ended June 2021 (2020: $1.61 million), resulting in net profit of $39.94 million versus the $24.08 million booked twelve months earlier. 

The earnings per share (EPS) for the first quarter ended June 30, 2021 amounted to $0.016 compared to earnings per share (EPS) of $0.010 reported in 2020. The number of shares used in our calculations is 2,500,000,000 units. The twelve months trailing EPS was $0.05. FESCO stock last traded on August 12, 2021, at $1.65 with a corresponding P/E ratio of 33.26 times.

Balance Sheet at a glance:

  FESCO, as at June 30, 2021, recorded ‘Total Assets’ of $918.31 million (2020: $532.04 million), a 73% increase year over year. The increase was attributed mainly to a 155% and 89% increase in ‘Property, Plant and Equipment’ and ‘Cash and cash equivalents’ which closed at $369.96 million (2020: $144.82 million) and $282.15 million (2020: $149.19 million), respectively.

Shareholders’ equity totalled $581.89 million (2020: $229.54 million), resulting in a book value per share of $0.23 (2020: $0.09).

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