Regency Petroleum Company Limited

What it is

Regency Petroleum is a petroleum marketing company that distributes and sells petroleum products across Jamaica, supplying propane gas in bulk to hotels, restaurants and bakeries, packaged LPG cylinders for households, and automotive fuels — diesel, 90-octane and 87-octane petrol — from its network of service stations.

The company was registered in May 2018 and was founded by Andrew and Jeneive Sabdul-Williams. Its most recent service station, in Kingston’s Trench Town, opened in December 2024, bringing the network to three fully operational company-owned sites.

Who owns it

Before the IPO, the company was 100 per cent owned by Andrew Williams. The November 2022 IPO sold approximately 287 million new shares — about 20 per cent of the enlarged company — at J$1 (US$0.01)apiece, raising J$287 million (US$2 mn).

Williams’s family stake was substantially diluted to roughly 80% post-offer, though an exact current percentage is not disclosed in available post-listing filings.

The listing placed RPL on the Junior Market of the JSE, where it benefits from a five-year full income-tax remission followed by five years at half the standard rate.

Who runs it

Andrew Williams, the founder, serves as Chief Executive Officer. Jerry Grant serves as Chief Financial Officer, presenting financial results at quarterly earnings calls.

The independent Chairman is Dr. André Foote, who previously chaired the Universal Access Fund Company Limited and served as deputy chairman of the National Land Agency. Independent directors include Radcliff Knibbs, Edgar Bennett and Andrew Cocking.

The money, in plain words

RPL posted J$1.63 billion (US$10.4M) in total revenue for the full year ended December 2024, up nearly 76 per cent from J$929 million (US$6 mn) in 2023. Net profit after tax was J$86.66 million (US$555K), an 86 per cent improvement on J$46 million (US$295 k) in 2023.

That works out to a net profit margin of 5.3% — meaning it keeps about 5 cents of profit from every dollar of fuel and gas it sells, modest but consistent with a low-margin commodity business (our calculation).

For the full year 2025, revenue grew a further 24% to J$2.02 billion (US$12.9M) and net profit rose 32% to J$114.5M (US$733K), a net margin of 5.7% — improving steadily as fixed costs are spread across more stations (our calculation). The shares trade at a price-to-earnings ratio of about 55 times, a premium valuation that prices in continued rapid growth; investors are paying well ahead of current earnings in expectation of more stations and higher volumes.

The company does not currently pay a dividend.

What it is doing now

In the June 2026 quarter, despite a 39 per cent increase in volumes of petrol sold, RPL recorded lower revenue — down 11 per cent to J$481.88 (US$3)M — because petroleum prices have fallen; yet profit rose 36 per cent over the same period in 2025. Selling more litres at lower prices, but keeping more of each litre: that margin expansion is the story investors are watching.

A truck stop being developed with a partner in Crawford, St Elizabeth, is on track to open in 2026, and the company is preparing to invest J$180M–J$200M (US$1.15M–1.28M) to redevelop the former Petcom station at Norman Manley Airport, which will also house a fast-food franchise, a convenience store, and an RPL office.

What to watch

• Debt load vs. station earnings. RPL is evaluating options to refinance debt it incurred building its third Kingston station. How it manages that repayment — debt, equity, or a share offer — will set the pace for the next expansion phase.
• Petroleum price squeeze. CEO Williams noted that the decrease in overall revenue was “probably because of price-cutting” as the company competes aggressively for taxi-driver loyalty. Volume growth must stay ahead of price erosion.
• LPG household segment. Williams has flagged plans to expand the household LPG segment, building on the existing bulk distribution business. This carries better margins than automotive fuel but requires upfront cylinder inventory investment.
• Station-by-station performance. RPL’s stated target is at least one service station in each parish by 2030. Execution pace, and whether each new site is self-financing, is the key test of the model.

This is news, not investment advice.