Regency Petroleum Company Limited (RPL) Earnings Call Transcript & Summary

Good morning, and welcome to the financial year 2024 earnings call for Regency Petroleum Company Limited. Now in 2024, Regency would have done $1.63 billion in revenue, which is no small feat. So without further ado, please help me to welcome the CEO of RPL, Mr. Andrew Williams, who will be hosting this earnings call today. Welcome, Andrew.

Thank you, Renate. And thanks, everyone, thanks for the LGI team for facilitating this process who are accommodating us to our earnings call for the year 2024. Thanks, guys. All right. So we'll start with an opening [indiscernible] as we come to you this morning, we again give you thanks for your mercifulness and blessings [indiscernible]. Thank you for life. We thank you for all that you have provided for us. We thank you for the company, Regency Petroleum of what has been doing. We thank you for our shareholders. We thank you for all that we have given to them and all that they have given to us, all the accomplishments for Regency Petroleum this far. As we surrender our operations to you and put everything into your [indiscernible]. As we go through this earnings call today, we ask that you be with us, strengthen us, help us of other to display and extend to our shareholders and the audience. Or what has been happening to Regency Petroleum, and what have we accomplished within Regency Petroleum. And we thank you once more for all that you have given to us, everything, all your blessings, all your mercies. [indiscernible] Okay. So welcome everyone, everyone. Our highlights for 2024. Firstly, we have our sales exceeded targets, and we achieved $1.63 billion in revenue for the year 2024 for the company and its operations and its management team. Yes, it's exceed our targets, but we expect this increase in revenue based on our plans and our growth plan and targets that we have for the next 5 years medium to short term. Our operating profit up by 92%, $95.22 million. Our gross profit $248.41 million from $121.76 million over the financial year 2023. And our net profit the bottom line up by 90% from $45.76 million over 2023, because it's low for 2024, $86.85 million net profit for 2024. That's a huge accomplishment for the company, and it shows our commitment to what Regency sets its target for, what we are set out to do, and what we have set out to do. Okay. Moving on to our Kingston Service Station, it was opened in 2024. Revenue increased 76%. Total expenses grew by 75%, earnings per share 0.06%, from 0.032% to 0.06%. Okay. Our financial counselor, Jerry Grant will now built into the details of the financials.

Good morning to our shareholders and our stakeholders, I am happy to present a snapshot of our performance by the full year, January to December 2024. Regency has generated $1.63 billion in sales for the period. We have reached $1 billion milestone in our third quarter. This $1.6 billion represents a 76% increase from the $928 million earned in the comparison to 2023 period. The increase in revenue was a direct result of the company operating Kingston Service Station in the reporting a record year compared to '22 and 2023 financial year. These figures are quite good, especially since we -- since petroleum has decreased prices over the period. Given the increase in the gas station and the ability to see what if you in revenue company last year, which we have the LPG segment has accounted for 8%. I think last year this time, it was about 24%. So maybe addition of these gas station, the increase in the automotive segment. It has -- the earnings from LPG has diminished. Gross profit increased by 104% from $121.76 million to $248.41 million, despite the challenges keeping our direct operating cost down. The company profit before finance costs increased by 92% from $49.54 million to $95.22 million. All right. Profit before tax increased 90% from $45.76 million to $86.85 million. Net profit was 89% higher at 86.66 million than the $45.96 million in the prior period. Okay. We'll go to the next slide, please. Okay. All right. Our cash and cash equivalents [indiscernible] at $12.76 million. This is down by 81%, as we have invested a lot in our Spanish stone service station and also in cylinders, our LPG segment. We have invested abroad approximately $85 million during the year into that segment. The property plant and equipment has increased 13% from $435.79 million to $490.41 million. Accounts receivable hit the $490 million -- sorry $106 million increased by 7% over the period. A significant caution of our accounts receivable is really to advances that we have made in the [ mineral ] location. These funds will be set off against the leasing of the property. In fact, the setup has commenced on October 1, 2024. As such, no cash payment will pass to the landlord until the balance has been liquidated. So in short, most of these receivables of $106 million would not really [indiscernible] the money that we have balance in the completion of that gas station. [indiscernible] There were not [indiscernible] during the period. Our costs payable increased by 34% and our service station increase it, and much more you will have to be purchased. We make the best use of the credit facility that has been for those offenders. And our peer business been in line with growth of the business. On this slide is now best can representation of what I've just mentioned, for those who prefer this format, and you can just view it in a short way. Okay. We are -- statement of cash flow. Cash generated by operation grew by 11%. I remember last year this time, I think it was under negative figure. I think it's apt see a positive figure this year. Cash used by investing activities increased by 17%, and cash used in financing activities increased by 65%. Fortunately, this is due to the additional finance lease. I will now over to Mr. Williams to continue.

Okay. Jerry, thank you for that insight on the financials of 2024. Now we are going to our company's outlook. Okay. So I'm happy to report first of all that Kingston Service Station has been in full operation since the last week of December. It has been highly anticipated the general public, our shareholders, everyone in the corporate area, have been looking forward to have a service station and we are to open since the last week of the December. Now as previously stated, we wanted to have these three service stations, four service stations, fully operational. So in our company's outlook, we are working now on the operations of these three full service stations. When I say [indiscernible], I mean, we are -- we know what evaluation or assessment with operation of each station and profitability of each station. So we can know where we are in terms of financing for our future projects. So future projects, I can say that we have some projects that we are looking at, we are in negotiations now, currently, for having with two projects on -- we have two projects on the [indiscernible] right now. So, we are currently in the negotiations on these two projects. One, I would say, would require us some significant financing. What is preliminary stage were the early stage as well. I'm hoping that if all goes well, we can have at least one, if not both, projects off the growth this year, and that would be based on a level of negotiations that would we come in towards the end of the third, or the beginning of the fourth quarter of this year, if all goes well. So currently, our outlook states where we want to experience these profits and revenues from the operation of these three service stations on having any additional cost to the corporate construction. Any additional costs with primary records over the last 2 years. We've been after the [indiscernible] constructure through a process, where we just keep the IPO, we were complete in Paradise service station. After that we complete the first completing [indiscernible] Service Station. After that, we had a process of completing Kingston Service station along with doing our franchise agreements with -- for LPG with just gas along with franchise agents on the automotive without service station [indiscernible] strive for. So right now, we're having to be settled up for this quarter. [indiscernible] We don't how any projects on hand right now for this quarter. So we will just do our evaluations and assessments on the three service stations on the franchise -- On the LPG, and decide how we move forward on the other foot that we have on [indiscernible]. These two projects, I cannot speak on them right now because they're in full negotiations. But what I can tell you what I saw automotive for the LPG to. If you do this last year, we have been organically spending on our cylinders. So we have been importing cylinders, container by container throughout the year last year to grow our LPG household. We already parts in the market for the bulk distribution of LPG across the island, based on our assets. We have needed to supply the market bulk. So we're growing organically. So we're going out and seeking business and growing the bulk LPG, which has been steadily growing. However, for the household LPG, we have been importing cylinders by container by container one by one as we go along, so we can grow it. Organically, we have seen much results from the LPG last year, but we are looking forward to see some results this year from the LPG to the expenditure that we made are injection eliminating the LPG last year. So our significant expenditure, but we still need some investment into the LPG [indiscernible]. This year, I don't want to see a lot, but we read reward sometime during the quarter, they've got, it takes time. Then there are process of the LPG distribution for household to get it off the road to a certain level, it takes time. And when we invest the LPG also. It takes time for the money [indiscernible], and can be specific in terms of cylinders. It takes time to create some order and to receive these cylinders, have them permission and have them into the marketplace. So that entire process states that. And we are not in other state, where we are purchasing 20, 30, 40 containers of cylinders as yet. So the same -- similar turn over time as if we were to purchase 15 containers, with all similar turn about that purchase in two or three containers, because at the same time, similar shipping time, similar clearance time whatever. It just probably just a bit smaller time period for what you are purchasing or what -- in the general scope, it's a similar time period. Now -- so for the LPG, we are looking to reap some awards on that this year. So with regards to the company's outlook, we have two major projects -- one major, major project, and we have another project looking at. We are hoping to come with that very soon, right, or sometime this year. And that is our media short-term expansion growth. We still have our plans for need of the long-term growth with continued investment in LPG continued service stations being across also to be our household name [indiscernible], not only LPG for automotive fuel. And I would say, we are on our way there, confident that we have been listed for 2 years, and we have accomplished so much. And again, this could only be in place because we have included [indiscernible] into our operations, and we are alone in [indiscernible] to take control of our decisions, and we can -- is a clear testament -- testimony as to what he has done to the company with our role when we have achieved over such a short period of time. So we are looking forward to the future of Regency Petroleum and its continued growth. Thank you.

All right. Thank you so much for that, Andrew. We are right now at the question-and-answer stage. I'm going to ask Jerry to join us, and we will get right into the Q&A. All right. So we will we will jump right in. Jerry, can you do a test for us to confirm that we can hear you?

Okay. Are you hearing?

We're hearing you.

That's great.

All right. So Andrew, there is the elephant in the room that we do need to address, right? Though it was not in the financial year of 2024, it did happen recently, and there are a lot of questions around it. So let's just take the time to address it. There was a fire but happened in the vicinity of RPLs location, and the audience wants to know, we do have several questions about it. So, we'll just jump right in and I'll give you a moment to address it first. And then if there are any questions that are unanswered thereafter, we can jump into those questions. So please go right ahead and explain to the audience what happened -- well, as much as you know around this span, how it has impacted RPL? How do you expect that incident to impact your bottom line as a company and your operations overall?

Well, Ray, with regards to the recent fire, it's a fortunate and unfortunate situation, for me, personally. It's a very unfortunate situation. Now speaking on top of Regency Petroleum, I can say once more that thanks to the Almighty, Regency has been spared. I mean, Regency has been spared. I cannot say there has been no, absolutely no loss to our equipment, assets and service station. I mean it was a touched there was no hard damage to our service station, at the vicinity of the fire. The fire was actually at our mill or that holds our [indiscernible] and [indiscernible], et cetera. So fortunately, thank you -- I have to say a special thank you to the Jamaica family pack, who really show and we add if you are to ensure that fire was contained in the ware holes and not spread across. There were buildings our holes or buildings. So I can have a for the Regency Petroleum was cleared from that fire that took place at the wheels, a job are closed by warehouse. However, based on the geographical location of our service station at the head office that we looking at the head office. We were sad enough due to the investigation that has taken place. So we have closed that space because the service -- this is not really a full service station. This is more of a sentimental service station. It's not a service issue per se. It's a space for 90 of the fluid. This is where we actually started out. So I just want to say it's a sentiment -- sentiments more for the company because this is a location that we are Regency Petroleum started off. And we is going only dispensed 90 [indiscernible] fuel. There is no 87 automotive diesel fuel. There is no ultra [indiscernible] there as a full service would. So it's just a dispenser 90. So it's actually more a it's a sentimental service station, which we -- as soon as all the investigations are right on the go ahead, we have to continue operations there. So again, I'm happy to report that no [indiscernible] in auto experience for has been damaged. So we are hoping that as soon as our investigations are completed, just because of the geographical location to low. But we're looking very soon now we can -- we can reopen. But it's more most service station because starting [indiscernible] 90 is what I know, is an art earning revenue earnings -- just what going to be dispensed. So -- that's where it is in the go ahead, so we can continue a clean operation our own warehouse, and we're going to have that [indiscernible] real.

All right. Thank you so much for that, Andrew. So coming out of that, there are a few questions that I think we can still take rent says that we understand that there was no damage to the service station, but was there any damage to the LPG operation?

LPG operation is by, for example, is a bit. So I can tell you as a reduced resource here. After we -- we've had so more cylinders [indiscernible] which were not matter we owe or products we distribute. So what we do, we don't too much cylinders to the plan also because what we do the refill and distribute [indiscernible]. So we will not use per for LPG cylinders. We just probably store very small and extended period because what I stored we have to get it out into the marketplace.

All right. Thank you for that. There were a few more questions that were along that line, so I think you would have -- the audience would have received the answers. So we will move on to the other questions, right? And of course, audience, if there is anything else that we would have misdoubled the file any concerns around that, please feel free to drop that in the chat. I will take it later on. So let me -- let us asking, well, that's the one we took. When do you expect the Spanish gas stations operations to really commit to play? And I'll let you answer that. I don't know what do we buy really what you're providing?

Well, it does really been here since the first week of December. But in terms -- in terms of revenues is close in the first quarter this year, we -- end on this first quarter -- end of March. When we're our financials for the first quarter, you will see revenue -- you would see the impact of the Kingston Service Station in that financial quarter in terms of revenue. Do you see what the ball. If not, I think those into the revenues from this first quarter. So what is rig in terms of revenues or [indiscernible] revenue -- revenues until the first quarter is completely difficult. We just commenced operation. The last week of December. So the last is like a week in the fourth quarter financials last year. So where we in this first quarter, you will see some impact on the revenue. Absolutely, we business [indiscernible] revenue -- was the [indiscernible] of the revenue.

All right. Thank you. How do you think revenue -- the revenue from the Spanish [indiscernible] station will compare to your other [indiscernible] gas stations, company-owned, company offered?

Well, if we have -- our management team, we actually have weekly meetings at least we -- at least it quality assurance and assessments on the -- each service station. What are the is that we look at overheads, we look at our revenue, we look at our margins because each service station will carry a different margin or market. So we have in a evolution contain, however, also be competitive. So this valuation -- the evaluation take place. we cannot say right now [indiscernible] contain what we are seeing. So we have been exceeding our targets in terms of volumes. However, margins are different, so I cannot speak to that right now. But what I can say to you is that key sort of volumes in terms of leaders that are being sold because it's one of the highest volumes future or the margin that's different at different I can [indiscernible] overhead. So we have [indiscernible]. So we in our financials, our point apply all of these under [indiscernible] so we can try to reduce our overhead as much as possible to increase our product and balance margin to be compete good in the marketplace. So it's all balance.

Of course. So thank you for that. I think there was another question from Limitless around, which station is your biggest revenue driver. But I think in that response, just now, you would have indicated that we need to wait until the end of Q1 at least, to be able to respond to that appropriately, right?

For [indiscernible] I just mentioned that we proved to be the highest revenue [indiscernible].

All right. Do you know what percentage of the revenues came from that station? I think Jerry might have that.

Where you [indiscernible] percentage -- well, the [indiscernible] you're talking about for Automotive because remember, we made up LPG, automotive, if you will or you -- so as the chart is quite that [indiscernible] we have in automotive retail fueling. So of that chart, we would have an automotive retail fuel et cetera, our slides. So of that chart, I would [indiscernible] I see to set up an net reserves [indiscernible] slide of the 45% to 50% of the total revenue or profitability of that slide on the fact when it comes up, governments into automotive fuel retail part of the fuel slate, retail and LPG bought deals. So it's 4 different segments. So after automotive fuel and to answer the question here, I took the point what you want say -- of the automotive fuel sales reps, which will be the service station sales. They will last 45% to 50% of the overall revenue of that slides.

Jerry, anything to add to that?

No, I think it's pretty much on target there.

Okay. All right. The -- the next question we're going to take is from [indiscernible]. And he's asking if there is any gas station takeover happening in the short term, I believe you spoke to that earlier as well, Andrew, as you know what is on the table. So we'll move break on to his next question, which -- in which he's asking what is happening with the convenience store at in the growth station?

Okay. The convenience store based on the valuation so far -- as a question, the convenience store we are putting some infrastructure work into the convenience store. We are doing some evaluations currently as to the profitability currently is not a level of investment that we for the convenience stores. So we are looking at some options. I don't know. We're looking at options for the company and so what option is for the project is that is a possibility that we could lease it to our franchise operator. That's why we're looking at to increase the profitability of operating a convenience store. A convenience store is -- it's somewhat similar to a small grocery shop, a convenience store. I want to say this a convenience store. Now the convenience store, we have 2 evaluations on profitability. It involves a lot of items that we have as additional administrative work with a [indiscernible] and for management. So when you -- you have to ensure that operates in a convenience store in a particular location, it's going to be profitable. So we have to do our evaluations into the profitability because, I mean, a convenience store primarily sales hot or cold beverages, primarily think and the profitability on these items like a bottle of water, bottle of soda, bottle of juice is so marginal that when you are employing staff for 2 shifts per day, we're talking about will start cashiers and append inside along with supervisors our management team for the convenience stores. I have to pay those bills, I have to pay electric bill. When you have 4, 5, 6 refrigerators being on with electric bill, we can do solar for it which your cataract. But when you have all that electric bill and those overheads popping in, it might appear that the profitability is huge, but we can do the evaluation, which is why we are happy to be a listed comp because with enlisting take time to these evaluations and these accounting processes to know whether it is profitable or not. So currently, based on an evaluations of important honest with you, we are looking probably able to franchise or at least just talk to somebody who's already in that line of business of our convenience store or fast food or whatever. So they can manage that other Regency would profitability from the lease arrangement rent or whatever. And we now would have some -- a lot of the overhead cost being incorporated into our financials. So as I said, that is the reason why we have these weekly management means because of evaluation [indiscernible] or research and development. Going we are persons [indiscernible] shoppers at the gas station just to customer services of the bar are better than not be an experience. So well, we are a marketing person who independently or to the service stations to cause district see the response from the service from the [indiscernible] just to make sure that we are above when you call out the customer service because it's a very competitive in the industry, and we have to handle. So we have -- as it's all about profitability and revenue when it comes on the economy in work. So it's still [indiscernible] evaluation, and we are looking at different upshot with regards to that. That's the way I think answer.

All right. And just to note, the Kingston location, those have a convenience store, correct? So that one -- that one was deemed...

I mean one actually is on a similar base on what I mentioned before. It's not been operated by regions.

Right. Okay. clarification. So I think this one is going to be for Jerry. And of course, Andrew, you're welcome to Chairman as well. The question is from Foot Forman. What is your target administration expense margin?

Jerry, you want to [indiscernible] go ahead.

Well, I'm not. Yes, I'm not here seeing, Jerry. So you can go ahead.

[indiscernible] right. So our target administration expense to -- our target administration expense wouldn't be general, it would have been specific to each location. So administrative costs at each location. Yes, we have probably a range that we would go into entities that I would not want to exceed. But for each location based on the operations there and the profitability there, we would -- it would vary a bit. So I don't know is asking about percentage-wise of the revenue. But we always try to -- I can tell you, we try to incorporate technology as much as possible. to increase our efficiency. So that is why we know our weakens a [indiscernible] in the running up business, our confidence of [indiscernible] total. Your overhead always has on our administrative costs are very, very significant to our profitability or well as it's managed. So only, we try to include other [indiscernible] my comment. So currently, we try to evaluate our own administrative and trade to be very prudent with what it will be in terms of employment of a personnel that is needed and to fully utilize and make each administrative person are very cost -- we fully active beneficial. So they are fully utilized with all our concession administrative visits. That is what we mean is why we can't mediations additional [indiscernible] costs. So in terms of margin-wise, but Jerry probably can answer in terms of the remuneration to percentage of revenue, we will plan to spend -- administrative expense. [indiscernible].

Yes. Yes. So I think you've answered the question with respect to the measures that you're putting in place to keep it under control. Jerry, would you be able to share what is the target in terms of the margin?

No, I don't have that with me right now, so I wouldn't be able to expand on that.

All right. So thank you. We'll get back to Forman on that one. I believe there was a follow-up to that question as well. Yes, here it is. He's asking you to speak to your approach to managing expenses versus your safe target. And I believe that that's the question you were answering before, Andrew. So we can move to -- the next one from Limitless, which is asking, are you planning or considering any fund raising this year?

Well, as I initially stated, it is thinking of this meeting way, we want to see the service station operator first. We have 2 projects that we have negotiated now. So we will determine how we response for these projects, if they got to fruition -- if they got to fruition. We are hoping that it's going to fruition by the end of this year. So one, we will to at the first quarter results of this year, the second quarter is also this year, what approach we would take in terms of fundraising. And we have many options with regards to fundraising. So we want to see our profitability.

All right. Fair enough. Novane is asking, is there any LPG distribution in Montego Beach. She says she has not seen any.

No. I -- currently, we started out the first quarter, and we have continued to handover and parts of centralist. What not currently in St. James. St. James is being cased to be a huge market business or all comparable to the Kingston, almost compared with Kingston. So we are going to -- going to Kingston, 4 more [indiscernible], we have to be fully prepared for that in terms of our resources or assets or cylinders. So on the basis that we're currently organically. It would have improved it all right now to drop into St. James market just yet. We have plans to be in St. James on the corporate area. Well, I would have said very so about. So now we have done is coming on board. So that again is part of the -- one of the projects that we have be negotiated. No. So -- what I promise we negotiate to do with LPG significantly with LPG. And if that comes up grow, then we will look to be in St. James in the corporate area quite soon, or soon enough.

Okay. Thank you for that. And thank you for the question, Naveen. Coming on the heels of that, what is the potential for LPG growth as you see it now based on your current market share?

There's a huge few just potential based on the marketing that we will. We will have very small -- small fraction of the market, a very small percentage of the market, very small. So that is good on [indiscernible] this is about a very small market, however, it allows us a lot of room for growth. And LPG market is known to be higher -- when market is known to be a higher margin profitability. It carries higher profits, higher margins for LPG. However, the other side is capital intensive, which [indiscernible]. So for LPG, we [indiscernible] organically. We will to do a significant business LPG, what are the negotiations that we are at the level comes through. It will be a significant injection for Regency in the LPG market, and we are looking forward to that. However, let's say it doesn't [indiscernible] plan. We still plan to inject heavily in LPG clever, I would say within the next -- within the 2 years, year to 2 years have that grow. We are looking to enter the corporate era, things on St. James for work. were more for the policy is a to take us significantly impact on the market. We're looking for the next 2 years if this project. So what we have to go through. If it goes through well, it's still going to be close to 2 years, probably a year or 1.5 years. So I would say in the next 2 years, we -- because LPG is where we started from. It's our core. So for sure, Regency will be extend ourselves into the LPG market shift. [indiscernible] this is a question of time as to when we didn't do so but for sure, it will seek a greater market share in the LPG market.

Fantastic. Thank you. So Jerry, we're going to hop over to you for a little bit. There is a question from Ryan. And I believe Limitless asks a similar question. What are the plans for repayment of the -- he has [ 215,000 ] here that -- which is due September 30, 2025?

Yes. Definitely, we are going to refinance -- going to refinance that debt because that was taking about fun construction on the gas station just opens were going to end see or start to [indiscernible] reserve to settle it.

I can answer that also. That was taken into consideration that Kingston Service Station would actually be open from the last year, February -- probably last year, February, what was. So we were considering that having Kingston Service Station open the last year, February would have revenues from 2 to 3 quarters for that year, where we could probably make -- if not on [indiscernible] could make a significant payment was it. But unfortunately, it is work that we -- and we actually started construction. We have comment operation. in December, say, January this year. So 2025 will be when the operations would have already started last year a beginner this year. So we definitely would need to rebalance it. However, we will be shopping it in terms of we will look for the best deal there is for us to refinance. So in order to protect our shareholders and the companies expenses and profitability. We will definitely shop to ensure that we get the best value under rebalance cost.

Thank you, Jerry, so much for that. I believe this question from Garfield was both that loan as well. He was asking what are the loan terms, no movement on the loan, and I think you would have addressed the no movement part. Is there anything that you can say about the terms of the loan apart from when it is due?

[indiscernible] in terms of yes. And in terms of -- it -- in terms of interest rate, I don't know, what is it that I don't know because the only thing that is significant in my mind, currently is the due date. I know we can see it quickly. So as we net this year. So we're looking -- our priorities right now is to shop the most cost effective refinance it at a company. And then as I said, we will see our profitability. I say we compete in to our profitability. So Kingston Service Station to be able to be the lower and it's [indiscernible] it just a month since we operated or 2 months since we operated. So when we do our financials, we have an accurate idea as for the profitability of the other [indiscernible] future plan. So probably that scans a minute next when we have our first quarter, I would say, okay, the profitability main we can say dismantle. So by a year or 2 years' time, then it if we continue this. We're going to take some font from Kingston and from our general reserves. And we have to see it on this. We probably will do a few. I mean what -- because if we have an opportunity, where we have projects coming onwards. You want to use that one to help at reserve to help finance those group opportunities. So sorry, I can answer your...

Excuse me, Mr. Williams, let me add so this is not our [indiscernible]. It's really a one are not set -- so yes, in at principle is not a not an anything like our enables up. It's a bond that was taken out [indiscernible] is November, not November, September 30. And as we have mentioned before, we are looking to refinance it when we due date. All right.

All right. So thank you. Garfield is adding some clarification to his question. He said for the loan, he's asking about 10-year interest rate security. And...

Interest rate was [indiscernible]. It is 2 years U.S. bonds.

Right. And you -- as you would have said before was about the -- it was for the Kingston location. No. I think that would have been answered. While you were speaking another a few points came in about a rights issue being better than refinancing or suggesting if you are right issue and an also said, what if you could access interest rate funding to repay the loan. What exactly is -- does that look like [indiscernible]. Yes. So...

And then maybe just thinking about maybe or something like that.

[indiscernible] want to give us an interest reloan.

Maybe you know how to contact them, tell them. Great. So along those same lines, Limitless was asking what RPL continent equity raise with the junior market limits being raised. And I think you would have answered that in terms of -- yes, Ryan, equity raise, we got you. An equity raise with the junior market limit being raised, and I think you would have responded to that with regards to the consideration of what the projects are, what you need to undertake and one that would...

Equity part -- equity. We do talk about particular product as we approve that. We ones where we needed to top in a particular project.

Exactly so. So there are a few more questions. Tavares was asking, when will the Spanish tone road location, start selling low sulfur diesel.

We're in the process of the current approval that we had was only 3 products. So we did some evaluations within the era and some research within the area to determine which one of the diesel product we will see, whether the ADO automotive diesel or ULSD [indiscernible]. And it came -- I mean, a significant difference than the bulk of farther in that location would have been ADO. So we are in the process of over -- because we didn't want a follow the authorities, our agencies to get an additional approval at the time of construction for ULSD additional product to be dispensed there. So we wanted to operate 3 months. We started the process already. So for the applications to include ULSD. So yes, there are plans to start dispense the ULSD at the location so we can increase our revenue, increase our profit. All is marginal in terms of what is still an increase. So -- so we are looking to do our prevalent approval process something that can short period and were long period off to the idea the grants that we are on a particular keen, but we will make every effort to ensure that we do our best in our application and approval and approvals so we can start the lower sold other allocation. I don't foresee any issues with it. It's just a time -- timeline.

All right. Noted. Shakira is asking, will there be an ATM service anytime soon?

When I do a of more than one institution has approached us regarding where we response what this infrastructure is actually there for at the machine. So as to which institution or commercial bank will take it off, still a negotiate right? I ask you one will be there as long as agreed.

And would this be across the board in terms of all the stations? Or is this a specific station that you're referring to?

For Kingston, right now. For Kingston, right now.

All right. Ryan, again, is not asking about the bond, who are the beneficial owners of the bond that is due in September?

That's would the [indiscernible].

Right. Limitless is asking, are you worried about the fiscal also opening on Spanish stone road?

Well, when I get to the region is policy is not to be concerned of our competition in terms of location with regards to regions because if you look at our service station. This product as interim. [indiscernible] is right next to a service station. [indiscernible] is right next to other service station. Kingston, I think is the only services side of this and in really so. So we work on the competition, especially in our June account company. We are pet we are proud of in Jamaica or competition. I will position by out. But we are proud of more than our competitor, which is a [indiscernible] will be in our vicinity. And I mean, the market is there for everybody. It's all of the operations of the company. And these are market share here for everybody to participate in. Again, it's up to the operations of the company and your strategy that you plan. What I'm happy to know that our Jamaican company is a service station in our industry because with this industry, you have a lot of multinational [indiscernible] and it's good to know that a Jamaican cannot in terms of be competitive with multinational opens in the market space. So I'm very to our first go up in doing what they are doing now and [indiscernible], I encourage other Jamaican, it depends on straight to improve because we are a [indiscernible] in Jamaica [indiscernible]. Jamaica will eventually benefit which will automatically triple the to or marketing companies benefited us. So it will -- everyone a win-win situation, I see when our Jamaican companies actually go and expand, especially in this market is most I'm not is the most present we -- it's a country. So we have the mojo. I'm sure we have the potential year, what company is here. In the rat everything half the potential to be a multinational. So to this collars, I don't want to set this on to ourselves as we can we not big enough as national every industry entertainable market, please. So we have for the global operations in our thinking. So [indiscernible].

All right. I really do appreciate that perspective. We will love the pager and the perspective of for everybody. The market is in the large enough. So there is no reason to canter each of [indiscernible]. So congrats to move, right? Now this, of course, is a big question that is coming out of the recent happenings as well the recent incident. How has your risk management approach changed? Or is it -- or is being reviewed since the fire occurred?

Well, I -- that's an easy question to answer. Whatever we have is place obviously worked because to have that magnitude of fire right next store to our service station. It is our mining that no asset for Regency Petroleum has been tarnished or corrected are damaged. So what we have in please. I would say -- we have as good policy and [indiscernible] so one of the things that we at first. So I mean it's a clear, I mean, indication, when do you see that magnitude of fat please right next to our door. We have to see that we weren't affected. So we have safety inflate procedures in place, we have innovative technology in place towards Asia and to see that the service on. So what was the measure we have in terms of security short value turn on safety equipment [indiscernible] equipment that we have used there, obviously work. So what we will do is ensure that anorthosite the same equipment, what we have in place is in work in auto and it's working. If I [indiscernible] systems, what we have our all our [indiscernible] in place [indiscernible]. So we are very console constantly with them, with the training for our staff with the fire department. So they are aware and ready to deal with us to Asia, such as a fire anything has around the treatment [indiscernible]. Also, we are constant trading and dialogue with our console [indiscernible].

Well, that's reassuring. Also about that, is there any consideration to fully renovate that station considering that it is now close or not operating?

Well. It's not a lot of rent personals, we just operate. We did some relocations to the tissue in the last year in terms of cannot be some other cosmetic stores. So right now, as I said, is a lot of geographic location [indiscernible] because of the -- and again, this service station is a sentimental service station. It's a service station that dispense 90 only. So we have, I think, 1/3 of the products. We do this also just. And as I said, when we opened our pile services, I know us consideration to close in that future. Since we do other full service station at Paradise but it was about sentiment where we was not -- was a trusted company per se. If a door when [indiscernible] addition to the revenue, but it was cost to the company to operate it was additional revenue, and it's a sentiment that will have been -- we're real started. So that's with [indiscernible].

Understood. So we have about 2 more questions. Ryan is very interested in the loan, rather the bond. So he's asking if it has any clause for conversion to equity.

No, no, no. That is a part of the stipulation of the bond.

Okay. Thank you for that. And I think our last question as it is right now, will Q1 be your best Q1 ever for your best quarter at all? Is that your expectation?

We're going to being we're looking forward to revenue or profitability. We are looking forward to see the results from Q1 and based on our track record and growth after over the last 2 years, each time a new service station comes on board, it usually increases our revenue and our profitability.

Certainly. So to close out, I did want to just highlight 2 commendations from the audience. virus said for the past couple of years, RPL made the best use of IPO funds in its time. So congrats on that kudos CEO and the team and Home Boss says congrats to the performance from RPL grade work. So again, again, congratulations on agreed 2024 question just came in from Shell. Shell maybe you joined late. The question is, did any work as get burned by the file. If so, how is there recovery? And Andrew, what I responded to that several times. Nobody got injured from RPL, none of RPL's property was damaged. All Right. So again, thank you -- thank you so much, Andrew. Thank you, Jerry. Thank you for the time. As always, on the transparency. You have shared openly with our audience, with your shareholders, as you always do to ensure that we know where things are with the company. So we thank you for this time. We thank you for the opportunity to get some insight onto what went on for 2024 and what the plans are for 2025, and we look forward to seeing you again for the Q1 earnings call. Thank you to our audience for being here. Thank you for your participation and your questions. We look forward to seeing you as well for the Q1 earnings call. Thank you, everyone. Have a great day.

Thank you.

Thank you.