FUTURE Energy Source Company Limited (FESCO) delivered its most profitable quarter on record as surging fuel volumes — boosted by a new service station and hurricane-related generator demand — combined with widening margins to drive a 176.4 per cent jump in earnings.

In its unaudited third-quarter (Q3) results for the period ended December 31, 2025, the fuel distributor reported net profit of $242.7 million, up 176.4 per cent year on year. Total litres sold rose 11.9 per cent year to date compared with the prior period, and the board said the company distributed “more fuel (measured in litres) than it has ever done before.”

For the quarter alone, litres sold climbed 21.7 per cent, helping to push turnover up 20.1 per cent to $8.8 billion. Notably, this performance came even as gasoline prices declined between roughly 3.6 per cent and 4.7 per cent during the quarter, while diesel prices were largely flat.

Gross profit rose 41.4 per cent to $597.1 million — more than double the rate of revenue growth — indicating the company kept more from each litre sold rather than relying on higher fuel prices to drive earnings.

“For the months of November and December there was a lot of switching from regular electricity to gas- or diesel-powered generators in the west as a result of the hurricane, which also contributed to the lift in volumes,” chief executive officer Jeremy Barnes told the Jamaica Observer.

Profits for the nine months to December reached $587.9 million, already surpassing last year’s full-year result of $461.5 million and the prior record of $571.3 million in 2023. The growth reflects stronger sales across FESCO’s retail network, including rising volumes at its recently opened Spanish Town Road location as it ramps up operations.

The improved performance was also supported by tighter cost control. Operating profit for the quarter rose 88.8 per cent to $288.6 million, while earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 64.7 per cent to $357.5 million.

Operating expenses accounted for 52.9 per cent of gross profit, down from 63.8 per cent a year earlier — evidence that overhead growth is being contained even as the company expands its asset base and staff complement.

The results suggest FESCO is beginning to extract greater efficiency from its expanding retail network.

The stronger earnings come as FESCO prepares to widen its retail footprint with new service stations across the island during the calendar year ending December 2026. Watchwell in St Elizabeth, Sheffield in Westmoreland, and Runaway Bay in St Ann have been identified as upcoming locations, with Barnes indicating the dealer-owned stations are targeted for development before September 2026.

He said the long-term strategy is to grow through a mix of company-owned and dealer-operated stations, with deeper penetration of western Jamaica. While acknowledging established competitors in those markets, Barnes argued that expansion aligns with underlying demand trends.

“In America, 86 out of 100 people have a car, Trinidad is about 67, and Jamaica roughly one in every three persons,” he said, noting Jamaica’s estimated 950,000 registered vehicles relative to a population of about 2.8 million. “As incomes expand and more people move from the lower end to the middle and lower-middle, they will have an opportunity to own a car, and we look forward to serving them.”

The company said it met its main targets for the quarter, including continued progress on construction at FESCO Oval, its second company-owned and operated service station on Spanish Town Road, St. Andrew, payment of dividends totalling $70 million, acquisition of additional LPG and industrial storage assets, and continued investment in workforce and operating capacity.

That expansion comes at a cost. Over the nine-month period, capital spending totalled more than $625 million, largely tied to new service stations and LPG infrastructure, outpacing operating cash generation and producing a net cash outflow.

Cash and cash equivalents ended December in a net overdraft position of $81.7 million, reflecting the intensity of ongoing capital works and working capital needs.

Long-term borrowings stood at $1.76 billion at December, up from $1.56 billion at March, reflecting financing for ongoing construction. Even so, shareholders’ equity increased to $3.24 billion as profits were retained, helping to keep the company’s debt-to-equity ratio in check at 0.63, down from 0.68 earlier in the year.

Liquidity indicators nonetheless strengthened. The current ratio improved to 1.59 from 1.21 at March, suggesting the company retains adequate short-term coverage despite the heavier investment cycle.

Whether those margin gains are sustainable once hurricane-related demand fades remains an open question, particularly as the company moves deeper into a capital-intensive expansion phase.

“It is important to note that the company’s long-term debt is poised to increase as construction-related disbursements are made during the remainder of the current financial year. However, the net increase in debt will overall be marginal, as it will be offset by the company’s scheduled principal payments,” the report stated.

FESCO forecasts a positive outlook for Q4 to end March 2026, provided there are “no additional natural disasters or unforeseen negative market events”. The company currently operates 23 service stations islandwide, comprising four company-owned locations and 19 dealer-operated stations.

Jeremy Barnes, chief executive officer of Future Energy Source Company Limited (FESCO).

FESCO continues its islandwide expansion, with new service stations planned for Watchwell, Sheffield and Runaway Bay.