August 15, 2024
Regency Petroleum Limited (RPL) for the six months ended June 30, 2024, reported a 144% increase in Gross Operating Revenue totaling $886.56 million compared to $363.27 million in the corresponding period last year. Gross Operating Revenue for the second quarter had a 168% increase to close at $481.88 million compared to $179.79 million for the comparable quarter of 2023.
RPL highlighted, “The increase in revenue is a direct result of the company operating three service stations in the reporting period compared to one service station in Q2 2023. This translated to a significant increase in volume sold on a year over year basis. We also benefited from expanded LPG sales through our partnership with JusGas Distributors Limited which has catalysed additional sales in Eastern Jamaica.”
Cost of Sales amounted to $756.53 million (2023: $303.62 million), this represents an increase of 149% year over year. Consequently, gross profit increased by 118% to $130.03 million compared to $59.66 million for the six months ended June 30, 2023. The company booked gross profit of $61.53 million for the second quarter versus $27.15 million reported for the similar quarter of 2023.
Administrative Expenses increased by 163% to close at $65.54 million (2023: $24.97 million), while Selling & Distribution Expenses increased by 291% from $274,138 in 2023 to $1.07 million in the period under review. As a result, Operating profit for the six months ended June 30, 2024, amounted to $63.82 million, an 80% increase relative to $35.44 million reported in 2023. Operating profit for the second quarter amounted to 28.75 million (2023: $14.93 million).
Finance Costs totalled $3.48 million a 139% increase from the corresponding period last year. (2023: $1.46 million).
No taxes were reported in either period. As such, Net Profit for the six months amounted to $60.34 million, a 78% increase from the $33.98 million reported in 2023. For the second quarter, Net Profit was $26.48 million (2023: $14.24 million).
Consequently, Earnings Per Share for the six months amounted to $0.04 (2023: EPS: $0.02), while Earnings Per Share for the quarter totaled $0.02 (2023: EPS: $0.01). The twelve-month trailing EPS was $0.05 and the number of shares used in these calculations was 1,435,786,770.
Notably, RPL’s stock price closed the trading period on August 14, 2024, at a price of $2.20 with a corresponding P/E ratio of 43.80x.
Balance Sheet Highlights
The company’s assets totalled $768.36 million (2023: $537.27 million). The growth in total assets was particularly due to a $121.53 million uptick in ‘Deferred expenditure’ and a $83.55 million increase in ‘Property, plant and equipment’.
Shareholder’s equity was $494.94 million (2023: $422.81 million), representing a book value per share of $0.34 (2023: $0.29).
Disclaimer
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
