Blue Earth Resources, Inc. Reports Quarterly Financial Results and First Retail Agreement Under Its BP Branded Jobber Contract

Rhea-AI Summary

Blue Earth Resources (OTCMKTS: BERI) announced a strong financial performance for the quarter ending May 31, 2022, with net sales rising by $10.96 million (102%) and a 66% increase in gallons sold compared to the previous quarter. The company reported a gross margin of $0.030 per gallon, surpassing the industry average of $0.024. They also executed their first branded fuel supply agreement under a new BP contract, expecting sales of approximately 120,000 gallons per month. The CEO highlighted significant improvements in sales despite challenges in credit terms within the industry.

Positive

• Net sales increased by $10.96 million (102%) compared to the prior quarter.
• Gallons sold increased by 2.46 million (66%) over the previous quarter.
• Gross margin improved to $0.030 per gallon, surpassing the industry average of $0.024.
• Executed first branded fuel supply agreement under the BP Branded Jobber Contract.

Negative

• Ongoing challenges in obtaining favorable credit terms led to higher supplier costs.
• The company experienced pressure on net profit margins due to less favorable pricing from suppliers.

KNOXVILLE, TN, July 01, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Blue Earth Resources, Inc. (“Blue Earth”) (OTCMKTS: BERI), a U.S. fuel marketer, announced its interim financial results for the quarterly period ended May 31, 2022, in its filing with OTCIQ on June 26, 2022. In addition, Blue Earth recently entered into its first branded fuel supply agreement under its previously announced BP Branded Jobber Contract. Highlights for the quarter included:

• Net sales increased $10,963,496, or 102%, over the previous quarter
• Gallons sold increased 2,462,878, or 66%, over the previous quarter
• Gross Margin/Gallon of $0.030 for the quarter as compared to $0.022 for fiscal 2022
• Executed initial branded fuel supply and Jobber Outlet Incentive Program contracts

Scott M. Boruff, CEO of Blue Earth, commented, “In spite of the challenging credit situations in our industry, we continue increasing sales, in both dollars and gallons, during the first quarter of fiscal 2023. Since implementing new controls around monitoring our net margins during the quarter, we made significant improvement in that area.”

In general, the retail sales of refined fuels are heavily based on high volume, low margin transactions. Blue Earth had a net profit margin of approximately $0.030/gallon for the quarter, as compared to the industry average of roughly $0.024/gallon. Obtaining credit on favorable terms from the most advantageous suppliers has been challenging, which has forced us to purchase from suppliers with less favorable pricing on the majority of our transactions.

On June 9, 2022, we entered into our first branded fuel supply agreement under our recently completed BP Branded Jobber Contract with a new convenience store site located in LaVergne, Tennessee. The customer also executed a Jobber Outlet Incentive Program (“JOIP”) Contract which provides incentives for the customer to adopt the BP brand and enter into the 10-year fuel supply agreement. Once development of the site has been completed, expected sales for the location are approximately 120,000 gallons per month. 

“It’s exciting to have our first fuel supply contract as a BP jobber,” said Billy Phipps, CMO of Blue Earth. Mr. Phipps continued, “We added a full-time salesperson in Q1 that is 100% devoted to serving new branded fuel supply customers. Our goal is to add a minimum of one of these contracts per month over the next year.”

Investors are encouraged to sign up for real-time Blue Earth investor alerts and stock updates here.

About Blue Earth Resources, Inc.

Blue Earth Resources, Inc. is a fuel marketer which provides custom-designed solutions to refined fuel procurement (branded and private label), supply issues, and logistics challenges faced by fuel customers in the United States. We offer a customized composite of risk management services, specializing in the computation of industry, financial, and geo-political information to assist each customer in making real time market decisions that reduce cost and prevent business interruption. Our risk management reporting solution incorporates specific risk tolerance assessments of each customer and includes purchase and sales contract review, and will include bulk inventory management (shipping, terminaling, and hedging), retail margin protection, and other custom reporting. 

Wholesale products supplied and distributed are various grades of refined fuels including gasoline, diesel, kerosene, biofuels, ethanol, and aviation fuel that are marketed along multiple supply points within regional pipelines.

Customers include retailers, jobbers, commercial, industrial, power plants, municipalities, government, agricultural, and manufacturers.

www.berifuels.com

Statements Regarding Forward-Looking Information

Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans, or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. Forward-looking statements are not a guarantee of future activities and are subject to many risks and uncertainties. Due to such risks and uncertainties, actual events may differ materially from those reflected or contemplated in such forward-looking statements. Forward-looking statements can be identified by the use of the future tense or other forward-looking words such as "believe," "expect," "anticipate," "intend," "plan," "should," "may," "will," "continue," "strategy," "position," "opportunity," statements regarding the "flexibility" of Blue Earth or the negative of any of those terms or other variations of them or by comparable terminology.

Contact:
Scott M. Boruff, CEO
investorrelations@berifuels.com
(865) 237-4448

FAQ

What were Blue Earth Resources' financial results for the quarter ended May 31, 2022?

For the quarter ending May 31, 2022, Blue Earth Resources reported net sales of $10.96 million, a 102% increase over the prior quarter.

How many gallons did Blue Earth Resources sell in the last quarter?

Blue Earth Resources sold 2.46 million more gallons than the previous quarter, totaling a 66% increase.

What is the gross margin reported by Blue Earth Resources for the quarter?

The gross margin for the quarter was $0.030 per gallon, which is higher than the industry average of $0.024.

What new initiatives did Blue Earth Resources undertake recently?

Blue Earth Resources entered its first branded fuel supply agreement under the BP Branded Jobber Contract, aiming for significant sales at a new convenience store.

What challenges did Blue Earth Resources face in the last quarter?

The company faced challenges in securing credit on favorable terms, resulting in higher costs from less favorable suppliers.