REGENCY Petroleum Limited (RPL), a petroleum marketing company, is expanding beyond Westmoreland, where it has dominated, to open its first service station in Kingston in September.

The company is moving into the Corporate Area, a previously announced plan, as it seeks to expand islandwide.

“We want to grow across the country, and we want to employ Jamaicans to work for a Jamaican company,” said Andrew Williams, CEO of Regency Petroleum, during a recent earnings call for its second quarter results (Q2).

The company reported a significant increase in its Q2 sales, up 168 per cent to $482 million, exceeding targets. Net profit also rose by 86 per cent to $26.4 million from $14.2 million in the same quarter of 2023. Revenues grew 144 per cent to $886 million, showcasing robust growth. The company expects to fulfil its previous promises to shareholders, who are anticipating substantial sales volume increases in the next two quarters once the new service stations are operational. According to Williams, in this quarter, the new Paradise and Negril service stations generated 75-80 per cent of revenues, with 55-70 per cent of that amount coming from Negril.

“I’m expecting a significant increase in the fourth quarter of this year when the Kingston location is open,” Williams said confidently.

RPL is also looking forward to expanding its presence on the south coast of the island, with proposed service stations in various stages of negotiation and pending approval. Although there have been delays at its Spanish Town Road location, the company remains optimistic about opening its Kingston location in September.

RPL’s corporate expansion is gaining momentum through a newly brokered agreement with JusGas Distributors Limited (JusGas), a local gas retailer. Under this agreement, JusGas will serve as the primary distributor of RPL’s bulk cooking gas in the Corporate Area. Additionally, RPL announced plans to expand through franchising, revealing its first franchise location along the main road from Westmoreland to Montego Bay, at the Whithorn Service Station. The franchising arm of the business will cater to both motor and bulk Liquified Petroleum Gas (LPG). During virtual sessions, shareholders enquired about LPG franchising, prompting Williams to clarify that the company’s LPG gas franchising policy requires a minimum capital outlay of $30 million through JusGas. For partnerships involving household cylinders, the capital outlay ranges from $12-15 million.

“We are open to the franchise on the LPG, and there are many different variations of the type of franchise we can have,” he replied.

Regency Petroleum Limited (RPL) is actively seeking partnerships to augment its presence in the industry, encompassing both automotive fuel and cooking gas. The company’s primary objective is to expand its automotive retail operations. With regards to its LPG business line, Williams emphasised that although organic growth has been consistent, RPL is adopting a cautious approach to capital expenditure. The company is strategically reinvesting profits from the LPG sector to drive sustainable growth.

RPL started with three service stations and over 70 employees, aiming to expand with the upcoming Kingston opening. The company hopes to establish a presence in prime areas by 2030, targeting at least one service station in each parish.