February 15, 2024
Future Energy Source Company Limited (FESCO) for the nine months ended December 31, 2023, reported a 6% increase in Revenue totaling $21.35 billion compared to $20.14 billion in the corresponding period last year. Revenue for the third quarter had a 13% increase to close at $7.59 billion compared to $6.71 billion for the comparable quarter of 2022.
Cost Of Goods Sold amounted to $20.21 billion (2022: $19.49 billion), this represents an increase of 4% year over year. Consequently, gross profit increased by 77% to $1.14 billion compared to $646.65 million for the nine months ended December 31, 2022. The company booked gross profit of $423.21 million for the third quarter versus $240.40 million reported for the similar quarter of 2022.
Operating and Admin expenses amounted $573.19 million for the nine month period ended December 31, 2023, up 166% from $215.55 million reported in the same period last year.
Operating Profit for the nine months ended December 31, 2023, amounted to $568.53 million, a 32% increase relative to $431.10 million reported in 2022. Operating Profit for the third quarter amounted to $190.66 million (2022: $155.59 million).
Finance Cost totalled $102.58 million, relative to finance income of $3.30 million booked in 2022.
No taxes were reported in the periods. As such, Net profit for the nine months amounted to $465.95 million, a 7% increase from the $434.40 million reported in 2022. For the third quarter, Net profit was $149.25 million (2022: $153.32 million).
Consequently, Earnings Per Share for the nine months amounted to $0.19 (2022: EPS: $0.17), while Earnings Per Share for the quarter totaled $0.06 (2022: EPS: $0.061). The twelve month trailing EPS was $0.24 and the number of shares used in these calculations was 2,500,000,000.
Notably, FESCO’s stock price closed the trading period on February 13, 2024, at a price of $3.72 with a corresponding P/E ratio of 15.43x.
Balance Sheet Highlights
The company’s assets totalled $4.90 billion (2022: $4.13 billion). The growth in total assets was primarily driven by a 21% increase in ‘Property, plant & equipment’ to close at $2.95 billion (2022: $2.45 billion).
Shareholder’s equity was $1.77 billion (2022: $1.16 billion), representing a book value per share of $0.71 (2022: $0.47).
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