November 14, 2023
Regency Petroleum Limited (RPL) for the nine months ended September 30, 2023, reported a 20% increase in gross operating revenue totalling $642.24 million compared to $533.07 million in the corresponding period last year. Gross operating revenue for the third quarter reflected a 39% increase to close at $278.96 million compared to $201.02 million for the comparable quarter of 2022.
Cost of sales amounted to $544.06 million (2022: 440.43 million), this represents an increase of 24% year over year. Consequently, gross profit increased by 6% to $98.17 million compared to $92.64 million for the nine months ended September 30, 2022. The Company booked gross profit of $38.52 million for the third quarter versus $30.31 million reported for the similar quarter of 2022.
Administrative expenses increase by 107% to close at $42.04 million (2022: $20.31 million), while selling & distributive expenses increase by 2516% from $21,215 in 2022 to $555,061 in the period under review. As a result, total operating expenses for the nine months ended September 30, 2023, amounted to $42.59 million, an increase of 109% relative to $20.33 million reported in 2022.
Operating profit for the nine months ended September 30, 2023, amounted to $55.66 million, a 27% decrease relative to $75.73 million reported in 2022. Operating profit for the third quarter amounted to $20.37 million (2022: $22.63 million). Finance costs for the nine-month period totalled $13.15 million, a 69% increase from the corresponding period last year (2022: $7.77 million).
Pretax profit for the nine months ended September 30, 2023, amounted to $42.50 million, a 37% decrease relative to $67.96 million reported in 2022. Pretax profit for the third quarter amounted to $17.64 million (2022: $16.89 million).
Taxation for the nine months had a 97% decrease to reach $375,000 (2022: $12.21 million). Consequently, net profit for the nine months amounted to $42.13 million, a 24% decrease from the $55.75 million reported in 2022. For the third quarter, net profit was $17.27 million (2022: $16.89 million).
Earnings per share (EPS) for the nine months amounted to $0.03 (2022: EPS: $0.04), while EPS for the quarter remained at $0.01 year over year. The twelve-month trailing EPS was $0.03, and the number of shares used in these calculations was 1,435,786,770.
Notably, RPL’s stock price closed the trading period on November 14, 2023, at a price of $2.15 with a corresponding P/E ratio of 72.29x.
Balance Sheet Highlights:
The company’s assets totalled $566.40 million; a 104% increase relative to $277.89 million booked in 2022. This upward movement was largely due to a 135% increase in property, plant and equipment, which amounted to $456.75 million (2022: $194.03 million).
Shareholder’s equity was $430.95 million (2022: $128.11 million), representing a book value per share of $0.30 (2022: $0.09).
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