Barita now third-largest shareholder in Fesco

Barita Investments Long Account has joined the line-up of top owners of petroleum marketing company Fesco.

Concurrently, the companies through which two of the founding owners hold their stake in Fesco — Tweedside Holdings and Trevor Heaven Holdings Limited, THHL, which are controlled respectively by Hugh Coore and Trevor Heaven — have reduced their holdings in the petroleum company, the combined sizes of which are equivalent to the Barita account.

Additionally, Tweedside and THHL have both taken positions among the top owners of Barita Investments Limited, market disclosures show.

None of the parties have responded to requests for comment on the Barita account and the share trades.

The value of the transactions regarding the Fesco shares, which happened in July, was estimated at a combined $1.5 billion. They were disclosed as connected party transactions.

The acquisition of the shares has positioned the Barita account as the third-largest owner of Future Energy Sources Company Limited, which trades as Fesco, behind two other founding partners, Trevor Barnes and Errol McGaw.

THHL and Tweedside now hold the fourth and fifth slots in the line-up of Top 10 Fesco owners.

Other disclosures by Barita indicate that Tweedside Holdings is now the sixth-largest owner of the investment company, 14 million shares or 1.15 per cent, while Trevor Heaven Holdings is in the eighth spot with over 7.7 million shares representing a 0.6381 per cent stake.

Both Heaven and Coore are also directors of Cornerstone Financial Holdings, which is the majority shareholder in Barita Investments Limited.

The transactions come amid aggressive moves by both Barita and Fesco in their various sectors to grow rapidly. Barita is pumping over $11 billion into real estate investments, while Fesco is building out new service lines and products, and adding to its network, with the latest branded station, the 18th in the chain, being opened on November 11 in Ocho Rios, St Ann.

The fuel marketing company’s September second-quarter earnings of $129 million exceeded the prior year’s by 126 per cent. Revenue climbed at an even more rapid pace, 187 per cent, to $7 billion.

The company’s sales have grown exponentially amid rising oil prices that has led to higher prices for gasolene. Fesco supplies fuel to dealers in its network. Oil has climbed as high as US$130 per barrel amid the war launched by Russia against Ukraine, but is currently trading at US$82 per barrel. Brent crude is trading at around US$90 per barrel.

Fesco’s growth remains steady despite fall-offs in oil prices, which ballooned to US$130 per barrel in early March at the onset of the war between Russia and Ukraine.

Wholesale gas prices in Jamaica were selling above $200 per litre at one point but regular gas is currently at $181 per litre. Petroleum marketing companies and dealers generally add a mark-up to the Petrojam price.

As for future growth, Fesco is preparing to enter the cooking gas market.

karena.bennett@gleanerjm.com