Regency posts strong results despite brief closure due to nearby fire

Regency Petroleum Company Ltd (RPL), the six-year-old cooking gas and service station brand, reported revenue of $1.6 billion for its December 2024 year-end—marking a 75 per cent increase over the previous year.

RPL produces and sells the Yaadman cooking gas brand of products, with its gas stations branded under the RPL name.

Revenue growth is expected to continue following the opening of its latest gas station on Spanish Town Road in January. The company spent $230 million over two years on the build-out, which was funded through a loan to the property owner.

According to the financials, “This represents a loan given to the builder, owner of the property located on Spanish Town Road, Kingston, to construct a gas station which RPL will lease. Upon completion, the monthly lease liability fee will be set off against the receivable until the balance is liquidated.”

RPL’s head office is located on Great George Street in Savanna-la-Mar, where it also operates another service gas station. Last month, however, fire broke out at a nearby commercial property adjacent to RPL's gas station in that parish. While the fire caused significant damage to neighbouring premises, RPL reported no direct damage to its gas station.

The company noted, “However, the incident resulted in the temporary closure of the gas station due to safety concerns, the ongoing investigation, and required regulatory inspections.”

Management does not foresee any material financial impact from the closure.

“The costs associated with the event, including the temporary closure, are being reviewed, but no significant impairments are expected to the company’s assets,” the report added.

For the financial year, RPL posted a profit of $87 million, double its 2023 results. Regency was listed on the stock exchange in December 2023, after being incorporated in May 2018 and commencing operations in January 2019.