REGENCY Petroleum Limited (RPL) has commenced construction on what it says will be Jamaica’s first formal truck stop.

It will be located in Crawford, St Elizabeth, adjacent to its existing filling station. The project will operate under a dealer-owned and dealer-operated model, with RPL supplying fuel and franchising the location, a move the company believes will further boost its revenue streams.

“We are a pioneering company. We always want to be the first to implement new policies and innovations within this industry, and this is one of them,” said Andrew Williams, CEO of RPL, during a recent investor briefing on Investor Curated.

Williams also teased plans for another service station, noting that negotiations are still ongoing. While withholding full details he confirmed that construction is expected to begin by year end, with more information to be disclosed in the coming months. Meanwhile, the Crawford truck stop is slated for completion and opening around this time next year. RPL continues to pursue an aggressive growth strategy, with plans to expand its footprint across the island. Williams emphasised that while non-cash items like depreciation are impacting the company’s financials, its expansion efforts remain on track.

“You can expect another announcement or two before year end regarding our growth plans across the country,” he said with a smile.

Despite its expansion plans, Regency Petroleum is still unable to resume operations at its Savanna-la-Mar, Westmoreland service station, which was closed earlier this year following a fire at a nearby warehouse. The fire affected an adjoining facility that stored motor oils, lubricants and transmission fluids, prompting a shutdown due to safety concerns. The company said a full clean-up is required before the site can become operational again, as the materials involved pose environmental and health risks. Although Regency had anticipated being cleared to reopen by now, ongoing seepage across the site has delayed the process. Williams explained that the location had been dispensing only one product and was maintained more for sentimental reasons. But with the opening of newer stations in Paradise and Negril, traffic has been redistributed, resulting in no significant impact on revenue during the closure.

“We are doing some evaluations on it now to see if it makes sense to continue. At the end of the day it is whatever is best for the company that we will do,” said Williams.

Regency Petroleum reported revenues of $434 million for the review period, reflecting a 7 per cent increase year over year. However, net profit fell sharply to $8.9 million, down by $33.7 million or 73.4 per cent compared to the corresponding period last year. The decline was attributed to a 44 per cent rise in total expenses, which climbed to $47.5 million. Jerry Grant, financial controller at Regency Petroleum, explained that the uptick in revenue was driven by performance across the company’s three full-service stations and fuel sales to DW People’s Choice Service Station. Still, the increase in operating costs, particularly non-cash items, weighed heavily on bottom-line performance.

“A significant increase in our depreciation charge, which is a non-cash write-off to the profit and loss statement, contributed to the rise in expenses. This is due to a substantial increase in our asset base, and we have to account for that write-off over the useful life of those assets,” Grant explained.

On the operational side, the company is cautiously eyeing expansion in the household LPG market. While acknowledging that the segment requires significant capital investment and carries a high risk of container loss, Regency has been gradually increasing its footprint. Over the past four to six months the company has made inroads into Hanover and the Lucea area, with Montego Bay seen as the next target, followed by Kingston, based on market demand. Williams noted that while LPG expansion is not currently a top priority, the company remains opportunistic and will move forward in phases where it sees strategic value. No definitive timeline was provided for the next phase of that expansion.

“It’s on the table because a huge market is there. We have a lot of room for growth to do in terms of the LPG over a period, so that’s very good for the company now,” said Williams.