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KNOXVILLE, TN, July 01, 2022 (GLOBE NEWSWIRE) — via NewMediaWire – Blue Earth Resources, Inc. (“Blue Earth”) (OTCMKTS: BERI), a U.S. fuel distributor, announced its interim financial results for the quarter ended May 31, 2022, in its filing with the OTCIQ on June 26, 2022. In addition, Blue Earth recently entered into its first brand fuel supply under its former announced BP brand wholesaler contract. Highlights of the quarter included:
- Net sales increased by $10,963,496, or 102%, over the prior quarter
- Gallons sold increased 2,462,878, or 66%, from the prior quarter
- Gross margin/gallon of $0.030 for the quarter compared to $0.022 for fiscal 2022
- Execution of initial branded fuel supply contracts and Jobber point of sale incentive program
Scott M. Boruff, CEO of Blue Earth, said, “Despite the challenging credit situations in our industry, we continue to grow sales, both dollars and gallons, in the first quarter of fiscal 2023. Since implementing new controls around the monitoring of our net margins during the quarter, we made significant progress in this area.
In general, retail sales of refined fuels are largely based on high-volume, low-margin transactions. Blue Earth recorded a net profit margin of approximately $0.030/gallon for the quarter, compared to the industry average of approximately $0.024/gallon. Obtaining credit on favorable terms from the most advantageous suppliers has proven difficult, which has forced us to buy from suppliers offering less favorable prices for the majority of our transactions.
On June 9, 2022, we entered into our first branded fuel supply agreement under our recently concluded BP branded dealer agreement with a new convenience store location in LaVergne, Tennessee. The customer also executed a Factory Outlet Incentive Program (“JOIP”) contract which provides incentives for the customer to adopt the BP brand and enter into a 10-year fuel supply contract. Once site development is complete, expected sales for the location are approximately 120,000 gallons per month.
“It is exciting to have our first fuel supply contract as a BP wholesaler,” said Billy Phipps, CMO of Blue Earth. Mr. Phipps continued, “We recruited a full-time salesperson in Q1 who is 100% dedicated to servicing new branded fueling customers. Our goal is to add at least one of these contracts per month over the next year. »
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About Blue Earth Resources, Inc.
Blue Earth Resources, Inc. is a fuel distributor that provides custom-designed solutions for refined fuel supply (brand and private label), supply issues and logistical challenges faced by fuel customers in the United States. We offer a personalized set of risk management services, specializing in the calculation of sector, financial and geopolitical information to help each client make real-time market decisions that reduce costs and prevent business interruptions. Our risk management reporting solution incorporates specific assessments of each customer’s risk tolerance and includes review of purchase and sales contracts, and will include bulk inventory management (shipping, terminal and hedging), retail margin protection and other custom reports.
Wholesale products supplied and distributed are various grades of refined fuels including gasoline, diesel, kerosene, biofuels, ethanol and aviation fuel which are traded along several supply points in the regional pipelines.
Customers include retailers, wholesalers, commercial, industrial, power plants, municipalities, governments, farmers and manufacturers.
Statements Regarding Forward-Looking Information
Certain statements contained herein are forward-looking statements, including, but not limited to, statements that predict or indicate future events, trends, plans or goals. Undue reliance should not be placed on these statements because, by their nature, they are subject to known and unknown risks and uncertainties. Forward-looking statements are not guarantees of future business and are subject to numerous risks and uncertainties. Due to these risks and uncertainties, actual events may differ materially from those reflected or contemplated in these forward-looking statements. Forward-looking statements can be identified by the use of the future or other forward-looking words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “should”. , “may”, “will”, “continue”, “strategy”, “stance”, “opportunity”, statements regarding the “flexibility” of Blue Earth or the negative of any of these terms or other variations of these or by comparable terminology.
Contact: Scott M. Boruff, CEO[email protected](865) 237-4448
Source: Blue Earth Resources, Inc.