Malaysia: Straits Energy Resources Q4 2023 profit increases to MYR 5.72 million on bunkering gains

Malaysia-listed Straits Energy Resources Berhad (SER), formerly known as Straits Inter Logistics, on Tuesday (27 February) posted a rise in profit for the fourth quarter (Q4) of 2023 mainly due to increased revenue from its oil bunkering and shipping related services segment.

The company recorded profit before tax (PBT) of MYR 5.72 million (USD 1.21 million) in Q4 2023, 234% higher than MYR 1.71 million during Q4 2022. 

“The revenue in the current quarter increased by MYR 190.77 million to MYR 962.35 million from MYR 771.57 million in the preceding quarter contributed substantially by the Oil Bunkering & Shipping Related Services Segment,” the firm explained.

“It contributed an increase of MYR 190.09 million as a result of an increase of approximately 18% in the cargo volume sold. The growth of revenue in Oil Bunkering & Shipping Related Services Segment was driven by higher demand of both MGO and LSFO from international shipping liners.”

Revenue for its oil bunkering and shipping segment in Q4 2023 is MYR 953 million compared to MYR 726 million in Q4 2022. 

On 30 November 2023, the company entered into a conditional shares sale and purchase agreement with its 70%-owned subsidiary, Tumpuan Megah Development Sdn Bhd (TMD) for the acquisition of 330,000 Straits Marine Fuels & Energy Sdn Bhd (SMF) Shares, representing 33% of the equity interestin SMF for a purchase consideration of RM3,663,619 that was fully satisfied via cash. 

“This acquisition was completed on 1 December 2023 and SMF becomes a direct wholly-owned subsidiary of the Company,” it said on the changes in the composition of the Group. 

Related: Malaysia: Straits Energy Resources makes move for SMF to become wholly-owned direct subsidiary 

Photo credit: Straits Energy Resources Berhad
Published: 7 March 2024