February 09, 2022

Future Energy Source Company Limited (FESCO) reported $8.01 billion in turnover relative to the $4.35 billion reported in 2020, representing a 84% increase. For their third quarter FESCO recorded a 139% increase in revenue to $3.68 billion from $1.54 billion reported for the corresponding period in 2020.

Cost of sales amounted to $7.76 billion (2020: $4.21 billion) an 85% increase from the year prior; resulting in gross profits of $245.99 million (2020: $141.92 million). While cost of sales for the third quarter ended December 31, 2021 rose by 139% to close at $3.56 billion (2020: $1.49 billion), leading to a gross profit of $117.67 million (2020: $48.18 million), up 144% year over year.

Operating and administrative expenses amounted to $89.50 million (2020: $58.72 million). For their third quarter, FESCO reported operating and administrative expenses of $51.21 million, a 76% increase relative to the $29.17 million reported in 2020.

For the nine-month period FESCO saw an 88% increase in operating profit, this amounted to $156.50 million (2020: $83.20 million). The Company reported operating profit of $66.46 million for the third quarter ended December 31, 2021, compared to $19.01 million documented for the comparable period in 2020.

For the nine-month period ending December 31, 2021, FESCO recorded $14.29 million in finance income (2020: $9.03 million). Finance income for the quarter closed at $7.17 million versus the $8.25 million booked for the previous corresponding quarter.

FESCO recorded profit before tax of $170.79 million (2020: $92.23 million). For the quarter, FESCO recorded profit before tax of $73.64 million relative to pre-tax profit of $27.26 million for the same period last quarter.

FESCO incurred no tax for the period (2020: $21.31 million) resulting in net profit of $170.79 million versus the $70.93 million booked twelve months earlier. For the quarter ended December 31, 2021, net profit amounted to $73.64 million versus the $20.99 million booked twelve months earlier.

The earnings per share (EPS) for the nine months ended December 31, 2021, amounted to $0.07 (2020: $0.03). EPS for the third quarter ended December 31, 2021, amounted to $0.03 (202: $0.01). The trailing twelve months EPS amounted to $0.08. The number of shares used in our calculations is 2,500,000,000 units. FESCO stock last traded on February 9, 2022, at $4.62 with a corresponding P/E ratio of 55.52 times.

Balance Sheet at a glance:

FESCO, as at December 31, 2021, recorded ‘Total Assets’ of $1.72 billion (2020: $532.92 million), a 223% increase year over year. The increase was attributed mainly to a 384% increase in receivables which ended at $592.71 million (2020: $122.52 million). Additionally, there was a 282% increase in ‘Cash and cash equivalents’, which totalled $277.51 million (2020: $72.67 million) and a 154% increase in ‘Property, Plant and Equipment’ which is now worth $584.29 million (2020: $229.91 million).

Shareholders’ equity amounted to $712.74 million for the period under review, a 153% increase when compared to the $281.19 million reported in 2020.

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