Knutsford Express profit dips amid oil price spike

The cross-country bus company, Knutsford Express Services Ltd (KEX), said its first-quarter profit fell 19 per cent due to a double-digit rise in fuel costs.

Net profit for the quarter ending August was $53.7 million, down from $66.4 million a year earlier.

“This was primarily driven by a surge in fuel costs, which rose by more than 41 per cent compared to the corresponding period last year,” according to CEO Oliver Townsend and director Anthony Copeland in a note to shareholders posted last week on the Jamaica Stock Exchange (JSE).

Revenue rose 5.5 per cent to $632.9 million from $599.7 million a year earlier.

Fuel prices have increased since the US and Israel strikes on Iran in February. Diesel fuel sold for $246.91 a litre up to Thursday, according to Petrojam, the state-owned refinery. During the review period, KEX would have witnessed fuel rise from $166.11 a litre in August 2025 to $236.44 a litre in August this year.

“While our revenue growth remains solid, our net profit was impacted by inflationary pressures in the local and global environment during the quarter,” stated the directors.

The bus and courier operator said the economy is still absorbing the effects of Hurricane Melissa, which struck a year ago, but that demand for transportation and logistics services held up.

Transportation and courier services generated the bulk of the total, with investment properties contributing $39.2 million to revenue.

The company continues to invest, adding three coaches during the quarter and installing solar energy systems at customer depots. Its new Mandeville depot and a commercial real estate project at Greenvale, just west of Mandeville, are in the final stage of completion, the directors said.

“During this quarter, we advanced our strategic capital programme,” stated the directors.

Earnings per share fell to 10.7 Jamaican cents from 13.3 cents.

luke.douglas@gleanerjm.com