FOCOL’s $25M net income impacted by cost of petroleum products
FOCOL Holdings Limited took a $5 million net income loss last year owing to a significant increase in the cost of petroleum products, according to the company’s unaudited financial statements for the year ended July 31, 2018.
In the report, FOCOL Chairman Sir Franklyn Wilson explains that while sales volumes increased slightly last year, competition in the petroleum products sector, coupled with the inflated cost of those products, led to decreased earnings.
“Net income for the year ended July 31, 2018 was $25 million, compared to $30 million the previous year,” the report states.
“There was a significant increase in the price of petroleum products in fiscal 2018. Despite a slight increase in sales volumes, competitive pressures related to higher petroleum prices resulted in decreased earnings in fiscal 2018.”
Inventories grew by $10 million from $15,801,083 in 2017 to $25,279,579 in 2018. And while revenues were up some $28 million, from $289,615,793 in 2017 to $318,002,171 in 2018, the company’s gross profit fell by $3 million.
What the company lists only as “other income” saw a dramatic decrease from $3,380,717 in 2017 to only $430,264 in 2018.
The company also listed in its non-current liabilities a $2.2 million line “due to associate” for 2018. In 2017 this line was only $494,349.
Earnings per share decreased last year to $0.22 per share, a softening compared to the $0.27 figure the year before.
According to the report, in order to continue to increase operation efficiency, during fiscal 2018 the company made an investment in industry-specific software that it hopes will improve operational efficiency and customer service.
“The board of directors wishes to thank our loyal customers, dedicated staff and shareholders for their continued confidence in FOCOL Holdings Limited,” Wilson said.
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