Fesco opens St Elizabeth service station and plans another by the end of the year | Company

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Future Energy Source Company Limited, operator of the Fesco brand, will add at least one additional service station to its network before the end of the year.

The oil marketing company recently celebrated the opening of another service station under the concessionaire owned and operated business model in Whitehall, St Elizabeth, taking its nationwide service station network to 17. Fesco, however, intends to increase this number to 20 before closing. of its March 2023 financial year.

The locations of the new gas stations were not disclosed.

The petroleum marketing company has added three stations to its network since its IPO in 2021, when the chain included 14 dealer-owned gas stations. Among the three additions, Fesco rolled out a single company-owned and operated gas station on Beechwood Avenue in Kingston.

For the first quarter ending June 2022, the oil marketing company nearly quadrupled its profit for the same period last year, from a profit of $40 million to $152 million. Revenue also increased by 238%, from $1.9 billion to $6.5 billion. By comparison, the company’s revenue was $12.7 billion for its entire fiscal year ending March 2022.

Fesco’s revenue growth over the past three quarters has been exponential – averaging $4.9 billion per quarter – part of which, according to CEO Jeremy Barnes, is attributable to rising fuel prices. But the oil marketing company’s decision to overhaul its business model to include a company-owned gas station – with Beechwood as the first to be rolled out in this category – has also provided an additional source of sales revenue, he added.

“The price of fuel has increased, but we are also selling more liters of gasoline. With the opening of Beechwood, we were expected to get better margins. We don’t just get wholesale margins from this operation, we also get retail margin. So yes, we are earning more per liter sold at Beechwood,” Barnes told the financial gleaner.

“But if you want me to separate what we sell in Beechwood versus what we sell in the network, I can’t do that for competitive reasons,” he added.

Fesco also derives revenue from its convenience store, the FYC Refill Water Store and Express Mart, as well as the rental agreement of the Mr. Breakfast Lunch and Dinner to Go restaurant, which helps create a “destination experience” in certain locations. Fesco. But Barnes said that revenue isn’t yet significant.

The oil marketing company still plans to enter the cooking gas market and anticipates future growth from this as well as the continued expansion of its gas station network.

Earlier this year, the company raised $1 billion through a bond issue, money it says is using to fund the projects, which are estimated to cost around $850 million.

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