Durrant Pate/Contributor

Regency Petroleum Company Limited (RPL), which only last December became a publicly listed company, is expanding fast with two more service stations to be launched in the coming weeks.

The fully operational service stations are being opened at Paradise Pen and Negril, Westmoreland during the current June quarter. Both stations are at the same stage for completion and are currently awaiting final apparatus to be delivered.

RPL founder and CEO Andrew Williams disclosed that the new stations will allow the company, which core business is the provision of LPG or cooking gas, to introduce ultra-low sulphur diesel (ULSD) and 87- octane fuel at the pumps, which will translate to increased revenue for the company.

This is in addition to RPL’s visibility being improved, as customers will be able to purchase LPG products and become more familiar with the offerings of the business.

The company is currently undertaking a recruitment drive to fill the vacancies at the two new service stations emphasising that it hasn’t encountered any difficulty in finding talent for the new locations.

Expansion plans advancing

Since RPL remains debt free with a strong balance sheet, it is exploring possible partnerships and acquisitions to grow its core LPG business. This forms part of its five-year strategy, as cooking gas demand continues to increase across the island.

In RPL’s first quarterly report as a public company for the period January- March 2023, Williams advises shareholders, “our expansion plans are geared towards Southern Jamaica where a larger portion of the Jamaican population lives. These plans can take the form of new business segments, alignment with other companies or any myriad of strategies to build our business.”

This means that portions of future profits will be reinvested into capital expenditure, which includes additional cylinders, fuel tank trailers and other key apparatus to enable growth. He also spoke of big opportunities which are currently on the table for new ventures for consideration in 2023 to expand RPL’s service station footprint.

Possible fourth service station

Firstly, RPL is locked in negotiations with a company which has received approval from all relevant authorities to construct a service station and convenience store in the Kingston 10 area. This company is seeking a partner to construct and lease the station for a 17-year period.

If feasible and approved, this would see RPL achieving its fourth service station.

According to Williams,” we have also begun exploring other service station opportunities as more commerce moves through the country from improved roadways that make commuting more amenable to the average person. These new stations can be manifested through our own capital or through a lease arrangement similar to the new Negril location.”

RPL’s financial advisor, GK Capital Management Limited, is being consulted along with the board of directors on the most appropriate route to be taken.

Chief executive Williams stated that the remaining ventures will be outlined in the upcoming annual report and subsequent reports whilst indicating his intention to continue to explore expansion and diversification options.

“I believe this is critical to our existence, growth and development as we aim to ensure RPL becomes a household name,” Williams told shareholders making reference to the company’s continually growing stock price, which increased from J$1.59 to J$2.31 in the first quarter, a 45 per cent improvement that translated to a market capitalisation of J$3.32 billion.