Regency Petroleum Company Limited (RPL) has reported mixed financial results for the first quarter ended March 31, 2025, marked by increased revenues but a sharp decline in net profit, as the company continues to invest heavily in growth initiatives across Jamaica.
Revenue climbed 7% year-over-year to $434.13 million, buoyed by expanded operations and strong fuel sales from its three full-service stations, including the newly opened Spanish Town Road location. Gross profit rose modestly by 4% to $71.23 million, though gross margin slipped slightly from 16.93% to 16.41%.
However, higher operating expenses—particularly non-cash depreciation and finance charges related to lease obligations—significantly impacted bottom-line results. Net profit fell 55% to $8.98 million, and earnings per share dropped to $0.011 from $0.024 in Q1 2024.
“We had to apply a lot of non-cash depreciation expenses this quarter due to our increased asset base, including leases for our new stations,” said Andrew Williams, Founder and CEO, during the earnings call. “While this affected net profit, our operating momentum remains strong.”
Expansion Strategy Underway
Despite the profit decline, RPL remains bullish on its growth trajectory. The company has launched construction on Jamaica’s first formal truck stop in St. Elizabeth, a dealer-owned and operated facility to which RPL will be the exclusive fuel supplier. The project is expected to be completed by mid-2026.
Additionally, the company confirmed it has won a bid for another Kingston-based service station, with more details to follow once final agreements are signed. Discussions are also underway for further locations, and a possible entry into Montego Bay’s LPG market is on the table.
LPG Segment Update
RPL’s LPG (cooking gas) segment showed strong performance in retail household sales, supported by increased investment in cylinder inventory. However, bulk LPG sales declined slightly due to tighter credit policies for commercial clients like hotels and restaurants.
“Our retail LPG continues to grow organically, and customer demand remains high,” said Williams. “We’re gradually scaling investment to meet that demand responsibly.”
Balance Sheet and Capital Plans
The company’s asset base grew by 42% year-over-year to over $1.03 billion, while liabilities rose by 96% to $494.63 million, mainly due to new lease obligations and the classification of a $215.60 million bond as a current liability. Management stated that they are evaluating options to re-finance or repay the bond ahead of its maturity in September 2025.
When asked about a potential rights issue, Williams said there are currently no immediate funding needs, but the option remains under consideration pending future capital expenditure requirements.
Market Confidence Holding Strong
Despite the earnings dip, Regency Petroleum’s share price appreciated 52% year-over-year, closing Q1 at $3.42 compared to $2.25 in the prior year. Market capitalization stood at $4.91 billion at the end of the quarter.
“This reflects continued investor confidence in the company’s vision and performance,” said CFO Jerry Grant. “We’re committed to growing shareholder value through disciplined expansion and sound financial management.”
Looking Ahead
RPL will hold its Annual General Meeting (AGM) on June 2, 2025, at the Courtleigh Hotel in Kingston. Shareholders are encouraged to attend in person, with a recording to be made available via the Investor Relations Curated YouTube channel managed by Learn Grow Invest.
Williams closed the earnings call by reaffirming the company’s long-term mission:
“We aim to make Regency a household name in Jamaica and eventually a multinational brand. Everything we do is focused on sustainable growth for our shareholders and the communities we serve.”
Watch the full Earnings Call here:
