FESCO eyes LPG market
FUTURE Energy Source Company (Fesco) Limited says it is on target to fulfil plans for significant growth in 2023.
“Yes, I think that we are. I think we are to a large extent,” says Fesco’s chairman of the board Trevor Heaven, who has oversight of 18 service stations across the island and primarily depends on the sale of fuel for the survival of its widening conglomerate of services.
“We are truly proud. We are proud of the achievements of the company so far. What we have done in under 10 years is a significant improvement on any entity that would have been created out of the blocks,” Heaven told Jamaica Observer‘s weekly Auto magazine.
Fesco, a locally owned petroleum marketing company, issued a new bond which raised $1 billion for its financing in March. The funds are to be used to primarily finance its entry into the cooking gas market as well as other gas station-related projects.
Fesco expects to enter the liquefied petroleum gas (LPG) market by April next year, while within the same time add at least five more service stations to its current 18 at an estimated cost of over $900 million for both. The company went public in 2021 and raised $400 million on the stock market.
“It’s not like we acquired something. We started from scratch, with very little resources, and I am extremely proud and privileged to be a part of Fesco,” Heaven explained, noting the huge development experienced at the Beechwod Avenue headquarters of the company in Kingston.
However, he predicted growth, with the flagship station becoming a model for the future of the company as it widens its interest beyond the focus fuel sales to acquire more properties and buildings and turn them into multi-item destinations.
“Our models come complete. We don’t just sell gas. We sell a service. We pride ourselves in our customers coming to our locations for services other than just to fill up, and so based on the locations, based on the environment, based on the demands of the communities we try to create those opportunities and services to match the demands of the community itself,” Heaven noted.
“If you look at Bodles in St Catherine, there is a full-fledged supermarket there. We have all the money services compliments of GraceKennedy, including FX Traders [cambios], Western Unions [remittance services], Bill Express [bill payments], and ATMs (automated teller machines) for the online banking services, deposits, and withdrawals, and quite a few auto-related services as well.”
Heaven said that the company has also acquired a number of properties on Spanish Town Road in the corporate area, which he regards as a major thrust for Fesco for 2023, in terms of developing facilities for other landmark services.
“We are going to diversify the product offering that they have. We already have our own branded water, local branded lubricants and chemicals, and we are going to be having additional services, diversifying the offer that the future brings to the market in the gas station line of business,” he pointed out.
“What I do say is that the company will continue to diversify and expand its profit offering,” he stated.
Fesco already owns 18 operating service stations, two more are expected to open soon, and three others are expected in 2023.
“So we are looking down the road at 23 locations in 2023,” Heaven noted.
“So we have declared and showed our hands, as well, in 2023, that one of the major thrust for us is to launch, in a fulsome way, into the LPG business. There is no secret about that. It is something that we have put in our prospectus, where we are going to market,” he added.