Malaysia-listed Straits Inter Logistics Berhad (Straits), the parent of Tumpuan Megah Development Sdn Bhd (Tumpuan Megah), posted an 83.4% jump in its third quarter (Q3) 2019 net profit due to a “pick up in the oil and gas industry”, it said.
Straits recorded net profit of RM 1.86 million in Q3 2019, compared to net profit of RM 1.01 million during Q3 2019, showed its latest financial statement.
Its overall revenue increased to RM 225.7 million in Q3 2019, from RM 69.4 million in Q3 2018.
Specifically, segment revenue from the company’s oil trading and bunkering services was RM 224.8 million in Q3 2019, representing a 224% rise from revenue of RM 69.4 million in Q3 2018.
Profit before tax for the similar segment was RM 3.6 million in Q3 2019, versus RM 2.6 million in Q3 2018.
“The pick up in the oil and gas industry continued to contribute positively in demand for the bunkering business,” it attributed.
“As the Group’s strategy to continue building a sustainable revenue stream consisting of oil bunkering and trading in oil products takes place, it had more than tripled its revenue for the third quarter of 2019 by RM 156.30 million to RM 225.69 million, from RM 69.39 million achieved in the third quarter of 2018,” said Straits in a review of its Q3 performance.
“The substantial increase in revenue is mainly due to the consolidation of the results of Tumpuan Megah Development Sdn Bhd (Tumpuan Megah).
“The Group recorded a profit before tax of RM 2.91 million in the third quarter of 2019 as compared to RM 1.28 million in third quarter of 2018. The 127.3% jump in profit before tax for the third quarter of 2019 as compared to the third quarter of 2018 was due to revenue improvement which increased by 225.3%, mainly contributed by the Group’s expansion of its product line to include the bunkering of Marine Fuel Oil (MFO).”
Tumpuan Megah, on 26 June entered into a provision of bunkering services agreement with Bintulu Port Sdn Bhd, enlarging its bunkering business in East Malaysia by establishing a new bunkering base within the port limits of Bintulu.
On 1 October, Tumpuan Megah, had entered into a second provision of bunkering services agreement with Lumut Maritime Terminal Sdn Bhd to establish a base in bunkering business in Lumut, known as “PIT-STOP BUNKER HUB @ LUMUT”, subsequently further expanding its bunkering business and operation into the West Coast of Peninsular Malaysia.
SMF Ixora Ltd, a wholly-owned subsidiary of Straits Marine Fuels & Energy Sdn Bhd, entered a Memorandum of Agreement to acquire its second vessel on 12 September, namely M.T. Poseidon, for a purchase consideration of USD 4.84 million. M.T. Poseidon is now the largest unit in the Groups’ fleet of vessels and has since been renamed M.T. Ixora.
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Photo credit: Straits Inter Logistics
Published: 25 November, 2019
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