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Malaysia: Fast Energy cuts Q3 net loss by 58% on year over bunkering gains

Malaysia: Fast Energy cuts Q3 net loss by 58% on year over bunkering gains

01 Dec 2022

Malaysia-listed Fast Energy Holdings Berhad post 58% lower net loss on year for the third quarter ended 30 September (Q3 2022) over increase in revenue mainly from the Group’s oil bunkering and petroleum trading business segment.

The firm recorded a net loss of RM 1.16 million (USD 0.26 million) in Q3 2022 compared to a loss of RM 2.76 million for the corresponding quarter in 2021, according to latest figures.

Group revenue from continuing operations for Q3 2022 was 14.9% higher at RM 55.88 million compared to RM48.61 million in Q3 2021; this increase in revenue was mainly due to increase in the Group’s oil bunkering and petroleum trading business segment, it notes.

Proposed increased acquisition of CCK Petroleum Sdn Bhd

To further enhance the earnings of the Group, Fast Energy which currently owns a 35% stake in Malaysian bunkering firm CCK Petroleum Sdn Bhd (CCKSB) intends to acquire another 175,000 ordinary shares [representing a 35% equity interest] of the company.

Upon completion of the proposed acquisition, Fast Energy will hold 70% equity interest in CCKSB and accordingly, CCKSB will become a subsidiary. This proposed acquisition was approved by the shareholders at the Extraordinary General Meeting held on 30 August 2022.

“Maritime trade had rebounded in the year 2021 in tandem with recovery in merchandise trade and world output. While medium term outlook remains positive, growth is subject to mounting uncertainties over inflationary concerns in the world economy,” it explains.

“Nevertheless, maritime transport remains an essential sector for the continued delivery of critical supplies and global trade during the recovery stages from a global pandemic.

“Premised on the above and the growing demand for marine fuel oils as global trade and shipping activities gain momentum following reopening of economies, Management is cautiously optimistic on the overall prospects of this business segment barring any unforeseen circumstances.”