February 29, 2024
Regency Petroleum Limited (RPL) for the year ended December 31, 2023, reported a 36% increase in Gross Operating Revenue totaling $928.76 million compared to $681.14 million in the corresponding period last year. Gross Operating Revenue for the fourth quarter had a 94% increase to close at $286.53 million compared to $148.07 million for the comparable quarter of 2022.
Cost of Sales amounted to $807.00 million (2022: $568.27 million), this represents an increase of 42% year over year. Consequently, gross profit increased by 8% to $121.76 million compared to $112.87 million for the year ended December 31, 2022. The company booked gross profit of $23.59 million for the fourth quarter versus $20.24 million reported for the similar quarter of 2022.
Administrative Expenses increased by 126% to close at $72.30 million (2022: $31.96 million), while Selling & Distributive Expenses increase by 995% from $128,441 in 2022 to $1.41 million in the period under review. As a result, operating profit for the year amounted to $49.54 million, a 42% decrease relative to $85.63 million reported in 2022.
Profit before Finance Cost for the year amounted to $49.54 million, a 42% decrease relative to $85.63 million reported in 2022. Loss before Finance Cost for the fourth quarter amounted to $6.12 million (2022: Profit of $9.90 million). Finance Costs totalled $3.78 million, a 70% decrease from the corresponding period last year (2022: $12.79 million).
Pretax Profit for the year ended amounted to $45.76 million, a 37% decrease relative to $72.84 million reported in 2022. Pretax Profit for the fourth quarter amounted to $3.25 million (2022: $4.87 million).
No taxation was recorded for the year (2022: $16.51 million). Net Profit for the year amounted to $45.76 million, a 19% decrease from the $56.33 million reported in 2022. For the fourth quarter, Net Profit was $3.63 million (2022: $577,180).
Consequently, Earnings Per Share for the year amounted to $0.03 (2022: EPS: $0.04), while Earnings Per Share for the quarter totaled $0.003 (2022: EPS: $0.0004). The number of shares used in these calculations was 1,435,786,770.
Notably, RPL’s stock price closed the trading period on February 28, 2024, at a price of $2.24 with a corresponding P/E ratio of 70.29x.
Balance Sheet Highlights
The company’s assets totalled $704.94 million (2022: $431.88 million). This resulted from a 68% increase in ‘Property, plant & equipment’ closing at $435.79 million.
Shareholder’s equity was $434.79 million (2022: $388.83 million), representing a book value per share of $0.30 (2022: $0.27).
Disclaimer
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.