Malaysia-listed Fast Energy Holdings Berhad on Monday (28 February) posted a 373.6% decrease in net profit for its financial year of 2021 (FY 2021).
Group loss was mainly attributable to one-off losses on disposal of wholly-owned subsidiaries, Oriem and Techfast Precision Sdn Bhd (TPSB) of RM 3.11 million coupled with higher overhead operating expenses.
The company recorded net loss of RM 5.68 million (USD 1.35 million) in FY 2021, compared to net profit of RM 2.08 million in FY 2020; revenue in FY 2021 was RM 194.70 million, 773.7% more than revenue of RM 22.28 million in FY 2020.
The jump in revenue was attributable to the oil bunkering business which reported a full year’s operations compared with half a month’s operations last year when it commenced operations in mid-December 2020.
Its bunkering, vessel chartering and petroleum trading segment generated external sales of RM 175.52 million in FY 2021, significantly more than external sales of RM 4.02 million in FY 2020.
Fast Energy’s oil bunkering business recorded profit before tax (PBT) of RM 0.50 million for the year compared to RM 0.01 million last year.
As at 31 December 2021, the company recorded advances amounting to a total of RM 10.92 million provided as financial assistance to CCK Petroleum Sdn Bhd (CCK) by the Company. This was provided in the ordinary course of business and to facilitate the running of the operations and affairs of CCK for the petroleum trading business.
“In an effort to expand Fast Energy Group’s revenue and profits as well as diversify its earnings base, the Fast Energy Group is diversifying its principal activities to include oil bunkering, vessel chartering and petroleum trading business, thereby reducing its reliance on its manufacturing business segment,” it stated.
“This new business segment commenced operations under its wholly-owned subsidiary, Fast Energy Sdn Bhd (FESB) in December 2020 and management hopes that this business will contribute to group profit going forward.
“The recent increase in oil prices results in higher working capital requirements from oil bunkering players as supply needs to be secured at higher cost. This also dampens the profitability for this business segment. However, with the inflow of funds from the rights issue, management will be able to utilise the proceeds as working capital to fund a larger supply volume for our customers.
“Taking into consideration 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.”
Related: Malaysia: Fast Energy bunkering operations record RM 213,000 net profit in Q2 2021
Related: Malaysia: Techfast Holdings Berhad changes name to Fast Energy Holdings Berhad
Related: Techfast forms bunkering JV with Fultonn Marine and Wise Marine; poised to become shipowner
Related: Techfast net profits dive 41% in 2020; positive outlook for bunkering subsidiary
Related: Malaysia: Techfast Holdings enters MYR 540 million MGO bunker supply agreement
Related: Malaysia: Techfast Holdings & Wise Marine ink USD 540 million bunker supply contract
Related: Malaysia: Techfast starts oil trading unit, unveils bunker supplier ambition with proposed CCK Petroleum acquisition
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Photo credit: Esmonde Yong on Unsplash
Published: 1 March, 2022
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