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