May 16, 2023

Future Energy Source Company Limited (FESCO) for the financial year ended March 31, 2023 reported a 109% increase in revenue, moving from $12.67 billion in 2022 to $26.54 billion for the period in review. For the quarter, the Company revenues rose to $6.40 billion from the $4.66 billion booked March 31, 2022, representing an increase of 37%.

The cost of sales margin for the year ended March 31, 2023 increased by 109% year-over-year increase to $25.65 billion (2022: $12.28 billion). As a result, gross profit increased to $889.11 million (2022: $391.22 million). Within the quarter, FESCO recorded cost of sales of $6.16 billion, which increased relative to the $4.52 billion booked in the same quarter last year. As such, the fourth quarter’s gross profit totaled $242.46 million, reflecting an increase of 67% year over year (2022: $145.22 million).

Operating and Administrative expenses amounted to $324.62 million, up from $136.27 million reported in 2022.

This resulted in an operating profit of $564.49 million for the year-end compared to an operating profit of $254.95 million documented for the comparable period in 2022. For the quarter, operating profit amounted to $133.39 million relative to operating profit of $98.45 million recorded in the prior corresponding quarter.

Consequently, FESCO recorded profit before tax of $566.53 million, an 120% increase from $257.88 million booked for the same period last year.  Pretax profit for the quarter closed at $132.13 million compared to profit before tax of $87.09 million in the previous comparable quarter.

The Company incurred no taxation for the period under review relative to $4.24 million for the comparable period, resulting in net profit and comprehensive income of $566.53 million versus the $253.64 million booked twelve months earlier. For the quarter, the Company recorded a net profit of $132.13 million compared to a profit of $87.09 million for the corresponding quarter in 2022.

As a result, earnings per share (EPS) for the year end amounted to $0.227 compared to earnings per share (EPS) of $0.102 reported in 2022. For the quarter, the earnings per share totaled $0.053 relative to EPS of $0.035 in 2022. The number of shares used in our calculations is 2,500,000,000 units. FESCO stock last traded on May 15, 2023, at $4.12 with a corresponding P/E ratio of 18.18 times.

FESCO noted, “FESCO acquired the LPG assets of Wilson Beck LPG including its Bernard Lodge filling plant on April 5, 2023. The Company is in the process of testing and increasing its capacity, building-out offices, commissioning assets and equipment, and has begun to softly serve small sections of the LPG industry as it prepares for its launch.”

Balance Sheet at a glance:

FESCO, as at March 31, 2023, recorded ‘Total Assets’ of $3.80 billion (2022: $2.79 billion), a 36% increase year over year. The increase was attributed mainly to increases of $1.52 billion for ‘Property, Plant and Equipment’ which closed at $2.66 billion (2022: $1.14 billion).

Shareholders’ equity totaled $1.30 billion (2022: $770.59 million), resulting in a book value per share of $0.52 (2022: $0.31).

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