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RICHARDSON, Texas -- Titan Global Holdings Inc., a diversified holding company and parent to the petroleum marketer and convenience store operator Appalachian Oil Co. (Appco), generated record revenue of $122 million in the first quarter of fiscal 2008, but suffered a consolidated net operating loss of $24.4 million, due to activities in the company's communications and global brands divisions, the company stated.
The company's Global Energy Group, of which Appco is a part, generated revenue of $90 million and a net operating loss of $435,000 for the first quarter of 2008, according to the company. Titan Global Energy Group represents 74 percent of Titan's consolidated revenues, and has launched new growth initiatives.
In the upcoming quarter, Appco plans to increase its margins on the sale of petroleum products by introducing E10 fuel in five locations. In addition, Appco successfully negotiated with petroleum suppliers to begin splash-blending ethanol into brand petroleum at certain locations, the company stated.
"We had an abbreviated first quarter with Titan during which rising market prices of petroleum during the first fiscal quarter of 2008 limited our liquid margins," Marty Anderson, CEO of Appco, said in a statement. "However, our initiatives to further penetrate our markets with biofuels such as ethanol and to expand splash-blending of these fuels will enhance margins in future quarters. Additionally, we recently completed negotiations with a new primary grocery and merchandise supplier, which will enhance inside margins and cash flow as well."