FESCO Posts Strong 2025 Financial Performance Amid Strategic Expansion

KINGSTON, Jamaica — Future Energy Source Company Limited (FESCO), one of Jamaica’s leading petroleum marketing companies, has posted another year of solid financial performance. According to its audited financial statements for the year ended March 31, 2025, the company reported a net profit of J$461.5 million, representing a 12.3% increase over the previous year’s J$410.8 million.

Growth Driven by LPG Expansion and Infrastructure Investment

Total revenue for the year climbed to J$30.05 billion, up from J$28.68 billion in 2024, an increase of approximately 4.8%. The growth was driven by steady retail and wholesale fuel distribution, as well as increasing contributions from its Liquefied Petroleum Gas (LPG) segment.

Despite an operating loss of J$102 million in the LPG segment, the company remains optimistic about its future prospects in this market. “We see LPG as a long-term strategic play,” FESCO’s Managing Director, Lyden Heaven, said in a statement. “Initial costs are expected, but we’re building a strong platform for future returns”.

Capital Investment Reaches J$774 Million

FESCO continued its aggressive expansion strategy in 2025, investing J$774.2 million in capital projects including property, plant and equipment. This was significantly higher than the J$550.9 million spent in the prior year. The investment included upgrades to retail infrastructure, the expansion of LPG plants, and acquisition of additional service station assets.

Improved Asset Base and Financial Position

The company’s total assets stood at J$5.6 billion as at March 31, 2025, an increase from J$5.3 billion in 2024. This was largely driven by increased capital assets and growth in right-of-use assets linked to new lease agreements. Shareholder equity also increased to J$2.72 billion, reflecting retained earnings growth and the maintenance of a healthy capital reserve.

Notably, FESCO maintained a gearing ratio of 40.6%, down from 45.5% in 2024, signaling improved leverage and capital efficiency.

Key Segments and Operations

FESCO operates through two key segments:

• Retail and wholesale fuel distribution, which contributed J$28.9 billion in revenues
• LPG distribution, which added J$1.1 billion to topline revenue

The company also operates and leases multiple service stations across Jamaica and manages LPG plants in Bernard Lodge and Naggo Head, St. Catherine.

FESCO’s Ownership Concentrated Among Founders and Key Directors

As at March 31, 2025, the top 10 shareholders of Future Energy Source Company Limited (FESCO) collectively owned approximately 76.8% of the company’s 2.5 billion issued shares.

The largest individual shareholder is Errol McGaw, with 351.76 million shares representing 14.07% ownership. He is followed closely by Trevor and Arva Barnes, jointly holding 351.71 million shares (14.07%), and Barita Investments Ltd., which holds approximately 11.57% via its Long Account. Other major stakeholders include Trevor Heaven Holdings Ltd., Tweedside Holdings, and Junior Williams, each controlling between 5% and 9% of the company’s equity.

Notably, FESCO’s directors and their connected parties collectively control 58.5% of the company’s equity—representing 1.46 billion shares. The largest combined stake among directors is held by Errol McGaw, whose direct and connected holdings total 15.25%. Lyden Heaven, the company’s Managing Director, holds 259.6 million shares personally and via connected parties, accounting for 10.39% of issued shares.

Other directors with significant stakes include:

• Hugh Coore: 283.9 million shares (11.36%)
• Junior Williams: 163.2 million shares (6.53%)
• Jeremy Barnes: 93.3 million shares (3.73%)

While senior management, outside of the board, hold relatively small stakes, the data underscores the tight control and confidence FESCO’s leadership has in the long-term prospects of the business.

This concentrated ownership structure can offer both stability and strategic continuity, as key decisions remain in the hands of those deeply invested in the company’s success.

Audit Report and Financial Integrity

The audit, conducted by Baker Tilly, resulted in an unqualified opinion. The auditors noted no material misstatements and highlighted the company’s adherence to IFRS standards and the Jamaican Companies Act.

Key audit matters addressed included the recognition of revenue from fuel sales and the assessment of expected credit losses on receivables—areas where significant management judgment is required. The auditors found no need for adjustments in these areas.

Looking Ahead

With its listing on the Junior Market of the Jamaica Stock Exchange since 2021 and a tax remission period running through 2031, FESCO is poised to continue leveraging its operational efficiencies and market expansion to deliver shareholder value. Its focus on diversifying energy offerings and strengthening logistics infrastructure places the company in a strong position to weather market volatility and meet Jamaica’s growing energy needs.

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