RPL reports Q1 profit of $19.74 million

May 15, 2023

Regency Petroleum Limited (RPL) for the financial year ended March 31, 2023 reported a 21% increase in revenue, moving from $152.16 million in 2022 to $183.48 million for the period in review. According to Management, “This was driven by increased volumes sold for LPG and gasoline products as consumers became more familiar with the RPL brand as we aim to maximize our full potential with our current capacity.”

The cost of sales for the year ended March 31, 2023 increased 22% from $123.83 million in 2022 to $150.98 million in 2023. As a result, gross profit increased to $32.50 million (2022: $28.33 million).

Administrative expenses for the quarter jumped 132% to $11.96 million compared to $5.15 million in 2022.This resulted in an operating profit of $20.50 million for the period ended compared to an operating profit of $24.53 million documented for the comparable period in 2022. Management indicated that, the Company “incurred higher accounting fees, bank charges, advertising and promotion and JCSD costs related to our listing on the Jamaica Stock Exchange.”

Consequently, RPL recorded profit before tax of $19.74 million, a 16% decrease from $23.44 million booked for the same period last year.

The Company incurred no taxation for the period under review relative to 5.53 million for the comparable period, resulting in a net profit of $19.74 million versus the $17.91 million booked twelve months earlier.

As a result, earnings per share (EPS) for the three months ended amounted to $0.014 compared to earnings per share (EPS) of $0.012 reported in 2022. The number of shares used in our calculations is 1,435,786,770 units. RPL stock last traded on March 12, 2023, at $2.61 with a corresponding P/E ratio of 64.44 times.

RPL management noted, “We are expecting to launch two (2) fully operational service stations by the end of the second quarter at Paradise Pen and Negril, Westmoreland. Both stations are at the same stage for completion and are currently awaiting final apparatus to be delivered. These new stations will allow the company to introduce Ultra Low Sulphur Diesel (ULSD) and 87 Octane fuel at the pumps and translate to increased revenue for RPL.”

Balance Sheet at a glance:

RPL, as at March 31, 2023, recorded ‘Total Assets’ of $440.55 million (2022: $176.45 million), a 150% increase year over year. The increase was attributed mainly to increases of $192.45 million and $48.45 million increase in “Property, Plant and equipment” and “Cash and cash equivalents” which closed at $314.51 million (2022: $122.06 million) and $49.83 million (2022: $1.38 million), respectively. The growth in the asset base was related to work in progress of the 2 new service stations which were supposed to have been commissioned in January 2023.

Shareholders’ equity totaled $408.57 million (2022: $90.27 million), resulting in a book value per share of $0.28 (2022: $0.06).


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