Future Energy Source Company (FESCO)
FESCO is a distributor of Petroleum products, including but not limited to transportation fuels and LPG {under the FESGAS™ brand}, Petroleum equipment and technologies, Lubricants, Chemicals and Purified drinking water. We distribute our products and services to a growing network of dealer owned service stations, dealer owned LPG filling plants and depots, commercial customers and retail customers.

Leadership

Lyden “Trevor” Heaven Chairman
Mr. Lyden D. “Trevor” Heaven is a graduate of The University of Reading and a Chartered Electrical Engineer by profession, with extensive experience in the bauxite/alumina industry. He has been in the petroleum industry as a franchise operator since 1988. Mr. Heaven is currently the owner/operator of Heaven’s FESCO’s DODO in Mandeville. He is a two-time Past President of the Jamaica Gasoline Retailers Association (JGRA). Mr Heaven is a Justice of the Peace, serving currently as Vice President of The Lay Magistrates Association of Jamaica and a Rotary Past President and District Chair. He currently serves as Chairman of Cornerstone Trust and Merchant Bank (CTMB), Chairman of the Credit and Audit Committees for CTMB, President of the Lay Magistrate Association of Jamaica and several other corporate and school boards.

Jeremy Barnes – Managing Director
Mr. Jeremy Barnes is a senior executive with extensive experience in operations management, financial analysis and financial management. He has over twenty (20) years of experience in the fuel trade, holding positions of dealer and managing director prior to his engagement at FESCO. He holds a Master of Business Administration from the Mona School of Business, University of the West Indies and a Bachelor of Business Administration in Finance from the Zicklin School of Business Baruch College in New York City, U.S.A where he graduated Summa Cum Laude and was the recipient of the Irvine Fromme academic Scholarship for International Finance. Mr Barnes is a former chief financial officer and chief operating officer of Marathon Insurance Brokers and Federal Capital Group Limited.

FESCO Achieved Its Best Year To Date

For the year, the Company was able to achieve its main targets to:
1. Create brand awareness for FESGAS™ and establish an accretive and sustainable LPG business;

2. Increase its service station network footprint and increase fuel sales measured in litres;

3. Increase profitability, specifically as it relates to operating profit (EBIT) and operating cash flow (EBITDA) and Total Comprehensive Profit

4. Execute significant capital expenditure (CAPEX), which does not yet reflect in sales or profit, which we forecast will generate substantial and sustainable returns in the medium term; whilst currently generating ROE after tax of 53.7%.

5. Continue and expand our community outreach programmes and social initiatives

In relation to FESGAS™, the Company was able to establish LPG filling plants, distribution, and create brand awareness and successfully capture 5.5% of the LPG market in December 2023. The Company is pleased with its entry and growth thus far, and is committed to developing a leading LPG business.

The Company is aware of the competitive forces within the industry and the requirement to continuously invest in capacity to facilitate further growth.

The Company had its best year with regard to sales in litres of transportation fuels. The Company was able to achieve sales of 120 million + litres for the calendar year ending December 2023 which reflects 18.9% growth and 9.5% share of market based on published data by the Ministry of Energy for 87,90, ADO and ULSD for the calendar year ended December 2023.

The Company was able to open three (3) new FESCO service stations, FESCO Maypen, FESCO Kitson Town and FESCO Port Maria which contributed, in part, to the growth experienced.

We are pleased to report that the Company has achieved its best year to date as it relates to
 gross profit (J$1,387,005,451, up 56.2% or J$499.2 million),
 operating profit (EBIT) (J$594.7 million, up 5.0 % from J$566.4 million),
 earnings before interest, taxes, depreciation and amortization (EBITDA) (J$778.7 million up 30.8% or J$183.3 million),
 total comprehensive income of J$956.0 million, up 67.3% or J$384.7 million and
 Shareholder’s equity of J$2.3 billion as at March 2024 is up 73.4% or J$956.0 million year over year from J$1.3 billion as at March 2023, which is more than seven times (7X) the Company’s shareholder’s equity of J$318.4 million as at March 2021.

The Company had its best year with regard to Total Comprehensive income.
Total Comprehensive Income of J$956.0 million for the year comprised of Net profit after tax (NPAT) of J$410.8 million and a surplus on the revaluation of real estate of J$545.2 million.

Net profit slipped 28.1% or J$160.4 million year over year from the Company’s record net profit achieved last year of J$571.3 million.
The slippage in Net profit reflects a significant increase year over year for:
1. Interest expense (net) +J$163.6 million;
2. Depreciation +J$145.1 million and;
3. Advertising expense +J$31.1 million.
4. Taxation (deferred tax) + Up J$25.2 million

The Company was also able to acquire both LPG and service station assets which we believe will facilitate growth in the medium and long term for the Company. The increase in interest expense, depreciation and advertising, in the main, is reflective of and is attributable to our medium to long-term vision to expand our network foot print, our expansion into LPG distribution and to increase brand awareness for both FESCO and FESGAS.