Fuel supplier Fesco boosts volume sales in pandemic
Published:Sunday | May 23, 2021 | 12:14 AM
Although fuel sales by Future Energy Source Company Limited hit a new high above 49 million litres, reflecting nearly 10 per cent growth in volumes, its turnover was marginally lower by more than $80 million for year ending March 2021.
The petroleum marketing company, which trades as Fesco and supplies fuel and other products to around 164 dealerships in its network, reported yearly revenue of $5.85 billion, down more than one per cent from $5.94 billion the previous year, in its first set of financial results since listing on the junior stock market in April.
Despite the lack of movement on revenue, Fesco otherwise made gains where it counted towards the bottom line, its cost of sales having fallen from $5.76 billion to $5.66 billion. Those cost savings resulted in higher gross and operating profit, as well as growth in net profit from $105 million to $109 million.
The fiscal year numbers to March 2021 are preliminary.
The fourth quarter, ending March, contributed $1.5 billion to revenue and $38 million to profit. That’s up from $1.36 billion in revenue and $31 million in profit in the comparative March 2020 period.
Fesco said the lockdowns and other pandemic-related restrictions impacted the sales of dealerships in the network, which are all dealer-owned.
Still, the company grew volume sales at a slightly faster pace than the year prior, in the pre-pandemic period. Volumes distributed between April 2019 and March 2020 grew 9.4 per cent to 44.92 million litres, whereas, for the next fiscal period ending March 2021, volumes grew 9.9 per cent to 49.36 million litres.