FESCO’s nine months ending December 31, 2021 Financials

  • For the 9 months ending December 31, 2021, FESCO reported a net profit of $170.79Mn (EPS: $0.15) which is a 140.8% or $99.96Mn increase relative to the prior corresponding period. The improved bottom line was supported by strong revenue growth of 84.2%, with revenues moving from $4.35 Bn to $8.01Bn. 
  • Revenue growth was supported primarily by two factors, increased prices as well as an increase in the quantity of fuel sold. FESCO’s higher prices reflected the increase in the price of fuel, with the company experiencing an 84.6% or $3.56Bn increase in its direct costs. The increase in volume was supported by the opening of its Beechwood Avenue station. 
  • With revenue growth outpacing the growth in costs, gross profit increased by 73.3%, while operating profit rose by 88.1%. 
  • Looking ahead travel activity is expected to increase in line with the ease in mobility restriction and the return to office of some workers, among them those working in the public sector. The government of Jamaica indicated that it will no longer pursue total lockdowns and no movement days as pandemic containment strategies. This is expected to increase travel activity, which bodes well for the demand for FESCO’s products and services. 
  • FESCO's stock price has increased by 71.32% since the start of the calendar year. The stock closed Thursday’s trading session at $4.93 and currently trades at a P/E of 59.2x earnings, which is above the Junior Market Distribution Sector Average of 23.5x

(Source: Company Financials)