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Malaysia: Straits Energy Resources concludes FY 2022 with 43.1% jump in net profit

SER recorded net profit of MYR 6.16 million in FY 2022 compared to MYR 4.3 million in FY 2021, which was mainly contributed by its oil bunkering and shipping related services segment.

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Malaysia-listed Straits Energy Resources Berhad (SER), formerly known as Straits Inter Logistics, on Tuesday (9 May) posted a 43.1% jump in net profit for its financial year (FY) of 2022, which was mainly contributed by its oil bunkering and shipping related services segment.

SER recorded net profit of MYR 6.16 million (USD 1.38 million) in FY 2022 compared to MYR 4.3 million in FY 2021, the company stated in its latest filing.

Revenue for FY 2022 totalled MYR 3.11 billion, an increase of 135.8% from revenue of MYR 1.32 billion in the financial year before.

“The Group achieved another record-breaking year with a revenue of RM3.1 billion, an increase of 135.8% as compared to the previous financial year and this was mainly contributed by the Oil Bunkering and Shipping Related Services segment. All other business segments of the Group also had shown an increase in revenue compared to the previous year,” it said.

“The significant revenue increase in the Oil Bunkering and Shipping Related Services segment was driven by a higher demand in both the marine gas oil (MGO) and very low sulphur fuel oil (VLSFO) from international shipping liners and new market expansion, backed by an overall increase in the global oil prices.”

In May 2022, the Group had successfully completed its maiden STS crude oil transfer operation at Victoria Bay, Labuan. This new business segment contributed RM4.2 million to the Group’s revenue.

SER through its 70% owned subsidiary, Tumpuan Megah Development Sdn Bhd (TMD), own and operate a fleet of 15 vessels that comply with health, safety and environmental standards, ranging from 500 to 7,820 deadweight tonnage (DWT). These vessels operate in inner and outer port limits of various seaports in Malaysia.

Products offered by the Group includes:

  • Marine Gas Oil (MGO);
  • High Sulphur Fuel Oil (HSFO);
  • Very Low Sulphur Fuel Oil (VLSFO);
  • Marine Fuel Oil (MFO); and
  • Low Sulphur Heavy Fuel Oil (LSHFO).

Over the years, the Group’s has expanded its assets base, strengthen its operational capabilities and broadened its geographical coverage to capture the larger growth opportunities in the oil trading and bunkering sector in both Malaysia and the Asia region.

At present, TMD operates in 19 ports in Malaysia, which include Lumut Port, Pasir Gudang Port, Tanjung Pelepas Port, Johor Bahru Port, Kuantan Port, Kemaman Port, Kuala Terengganu Port, Bintulu Port, Labuan Port and Sapangar Bay Oil Terminal and all of which are licensed under Petroleum Development Act 1974 (PDA Licenses) for its bunkering services.

SER said the growth in revenue for FY2022 was mainly attributed to the numerous strategies undertaken by the management to gain a bigger market share. As a result of a slowing economy activity, there was margin compression during that period as a result of competitive pricing and increased costs from suppliers. The oil trading and bunkering business is characterised by high sales volumes and low margins.

In the fourth quarter of 2022, the Group expanded its oil trading and fuel bunkering services to seagoing liquified natural gas (LNG) vessels within the Labuan waters whereby TMD would provide bunkering and related services to international and domestic vessels passing through the Labuan waters. Its maiden operation involves supplying 4,000 metric tonnes of LSHFO to an LNG tanker. The bunkering service entails the supplying of LSHFO which is not available in Labuan or neighbouring states. This had boosted Labuan’s reputation and image as the new bunkering hub in the region.

SER also stated TMD is aware of the profound changes driven by technological disruption and the emergence of new technologies in the global supply chain.

“As such, TMD has started its programme towards automation and digitalisation. A shift to digitalisation is a tool for optimised bunker business models, greater transparency, cross industry cooperation and the decarbonisation of the O&G industry,” it said.

RelatedVictoria STS completes its first-ever STS crude oil transfer off Labuan
RelatedStraits Energy Resources and Fendercare Marine to promote Labuan STS services
Related: Straits Inter Logistics undergoes name change to Straits Energy Resources
RelatedTumpuan Megah Development to collaborate with Petronas for bunker deliveries
RelatedStraits Inter Logistics receives government approval to develop STS hub
RelatedStraits Inter Logistics subsidiary to become STS operator at Victoria Bay, Labuan
RelatedMalaysia: Straits Inter Logistics gears up for USD 3.6 million STS hub project
Related: Malaysia: Straits Inter Logistics posts 26% rise on year in profit for Q1 2021
Related: Malaysia: Strait’s unit Victoria STS completes first-ever STS LNG transfer in Labuan

 

Photo credit: Straits Energy Resources Berhad
Published: 10 May, 2023

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Decarbonisation

SMW 2024: Maritime industry on track to adopt mid-term decarbonisation measures, says IMO chief

Safety, inclusion and transparency will be key areas for Mr Arsenio Dominguez’s tenure as Secretary-General of the International Maritime Organization.

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SMW 2024: Maritime industry on track to adopt mid-term decarbonisation measures, says IMO chief

The article ‘Maritime industry on track to adopt mid-term decarbonisation measures: IMO chief’ was first published on Issue 1 of the Singapore Maritime Week 2024 Show Dallies; it has been reproduced in its entirety on Singapore bunkering publication Manifold Times with permission from The Nutgraf and the Maritime and Port Authority of Singapore:

Toh Wen Li
[email protected]

The maritime industry is “on track” to roll out decarbonisation measures by 2025 as set out by the International Maritime Organization, said its new chief Arsenio Dominguez.

“We are on track to adopt mid-term measures by late 2025 to cut greenhouse gas (GHG) emissions, to reach net zero targets,” said Mr Dominguez, who took over as IMO Secretary-General in January.

In 2023, the IMO released a revised GHG strategy to reach net-zero emissions from shipping by or around 2050 – far more ambitious than its 2018 initial GHG strategy, which aimed only to cut emissions by at least 50 per cent compared to 2008.

“These will help us progress towards achieving netzero GHG emissions by or around 2050, with indicative checkpoints to reach by 2030 (cut GHG emissions by at least 20 per cent, striving for 30 per cent), and 2040 (cut GHG emissions by at least 70 per cent, striving for 80 per cent).”

Mr Dominguez, who will be speaking on the opening day of the 18th edition of SMW, also emphasised the need to keep seafarers safe against the backdrop of heightened geopolitical tensions. He said the attacks on ships in the Red Sea have far-reaching economic implications.

“Prolonged disruptions in container shipping could lead to delayed deliveries, high costs, and inflation. Energy security and food security could potentially be affected due to increased prices,” he said.

“These attacks pose serious threats to global maritime security, as well as the security and maritime trade for the coastal states in the region,” he said, calling out the Red Sea attacks as “categorically unacceptable”. But he remains confident that the industry will continue to stay resilient. “I trust that shipping organisations and Member States alike will come together in the relevant IMO fora to seek collaboration and look for solutions together.”

Mr Dominguez also pledged to create a more inclusive IMO, one that is more gender-balanced in an industry that has long been dominated by men.

“I have appointed a gender balanced senior management team and initiated a policy of refraining from participating in panels or events unless gender representation is respected. I encourage the maritime community to follow this example,” he said.

He added that the IMO will also strive to fulfil its mandate as the world’s regulator for international shipping; support IMO’s 176 Member States, particularly Small Island Developing States and Least Developed Countries; raise public awareness of IMO’s impact; and adopt a “people-centred approach”.

“My vision is for IMO to flourish as a transparent, inclusive, and diverse institution,” he said. 

Singapore can ‘shine a light on the way forward’

Key maritime hubs like Singapore can play a key role as the industry pushes ahead in its quest to decarbonise, said International Maritime Organization’s (IMO) Secretary-General, Mr Arsenio Dominguez.

“Singapore is (in) a great position to participate in trials and pilots to show what works, including routebased actions – and share results of any trials back to IMO,” he said.

The green transition poses a slew of fresh considerations for the maritime sector. A major bunkering hub such as Singapore will need to look at making changes to infrastructure to deliver new fuels.

Other considerations for the industry include safety, pricing, lifecycle emissions, supply chain constraints, barriers to adoption and more, added Mr Dominguez. Seafarers, too, will need to be trained in how to operate new technology safely.

“We need ‘early movers’ in the industry as well as forward-looking policy makers to take the necessary risks and secure the right investments that will stimulate long-term solutions for the sector,” he said.

Singapore Maritime Week is a chance for key stakeholders to “have the conversations and discussions that can formulate ideas and bring new solutions”, Mr Dominguez said.

Now, more than ever, collaboration will be crucial. “The experience of critical maritime hubs like Singapore can help shine a light on the way forward for many issues. Here the IMO can play a role in providing opportunities for Singapore and other maritime hubs to share their expertise with all Member States. Shipping is global – no single country can go it alone.” 

Singapore Maritime Week 2024 was organised by Maritime and Port Authority of Singapore from 15 to 19 April. 

 

Photo credit: International Maritime Organization
Article credit: The Nutgraf/ Maritime and Port Authority of Singapore
Published: 23 April, 2024

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MoU

IBIA and BIMCO to collaborate on bunker fuel and maritime challenges

Both will collaborate in areas including research initiatives, studies, and projects relevant to bunker or marine energy industry and maritime sector as well as training and education.

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IBIA and BIMCO to collaborate on bunker fuel and maritime challenges

The International Bunker Industry Association (IBIA) and BIMCO on Monday (22 April) said they have signed a Memorandum of Understanding (MoU) to collaborate on some of the monumental challenges and opportunities within the areas of bunker, marine energy and maritime sectors and help facilitate shipping’s decarbonisation efforts.

The parties have agreed to leverage their respective expertise and resources to develop innovative solutions and initiatives to facilitate the transition towards cleaner fuels and efficient and sustainable shipping practices. The partnership MOU will focus on addressing the following key areas:

Research and Development: Collaborate on research initiatives, studies, and projects relevant to the bunker/marine energy industry and maritime sector.

Information Sharing: Share relevant information, publications, and data that may be beneficial to the members of both organisations.

Training and Education: Explore opportunities for joint training programs, seminars, and educational initiatives to enhance the knowledge and skills of professionals in the maritime and bunker/marine energy industry.

Influence: Work together on efforts to address common issues and challenges faced by the industry.

Alexander Prokopakis, Executive Director of IBIA, said: “This partnership between IBIA and BIMCO marks an important step towards addressing the pressing challenge of decarbonisation in the shipping industry. The collaboration underscores the industry’s collective commitment to navigating towards a greener future for maritime operations.”

David Loosley, BIMCO Secretary General & CEO, said: “As we work towards the checkpoints and targets of the updated GHG strategy of the IMO, working across all sectors that influence and support decarbonisation of shipping will be key. Our ships will be relying on many different fuel solutions in the process and working toward the safety and availability of those is crucial.” 

IBIA and BIMCO are committed to driving progress towards a more sustainable and environmentally responsible future for the global shipping industry.

 

Photo credit: IBIA and BIMCO
Published: 23 April 2024

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Biofuel

Peninsula and NYK collaborate on B30 biofuel bunkering op in Zeebrugge

Peninsula barge “New York” delivered 1,200 mt of B30 bio bunker fuel to “Garnet Leader”, a NYK vehicle carrier on 24 March in Zeebrugge, Belgium.

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Peninsula and NYK collaborate on B30 biofuel bunkering op in Zeebrugge

Marine fuel supplier Peninsula on Monday (22 April) announced the successful conclusion of the first B30 biofuel supply deal in Zeebrugge, Belgium, in collaboration with the Japanese shipping company, Nippon Yusen Kabushiki Kaisha (NYK). 

The deal, which marks a significant milestone in sustainable fuel distribution, saw the delivery of 1,200 metric tonnes (mt) of B30. 

The delivery, executed on 24 March involved the vessel Garnet Leader, a NYK vehicle carrier. 

Peninsula's barge New York, played the role of ensuring the transportation and delivery of the biofuel to its destination in Zeebrugge.

Kaori Takahashi, General Manager of NYK’s Fuel Group, said: “NYK is proud to collaborate with Peninsula in this pioneering supply of B30 biofuel, which underscores our dedication to environmental sustainability and innovation in the maritime sector.”

“By leveraging sustainable biofuels like B30, we are taking meaningful strides towards reducing greenhouse gas emissions.”

“NYK remains dedicated to driving positive change within the industry while meeting the evolving demands of our customers and stakeholders.”

B30 biofuel, a blend comprising 30% ISCC EU certified sustainable UCOME, which is biofuel derived from Used Cooking Oil, offers a promising avenue reducing GHG emissions by 84%, thus mitigating the environmental impact of maritime operations. 

By using biofuel technology, Peninsula continues to pave the way for a greener future while simultaneously meeting the evolving needs of the shipping industry.

Peninsula's Head of Biofuels Desk, Nikolas Nikolaidis, said: "As the maritime industry, along with prominent players like NYK, intensifies their adoption of Sustainable Marine Fuels (SMF), the accessibility of such solutions grows in significance.”

“Peninsula is committed to collaborating closely with our established clients and partners to deliver SMF solutions where demand is highest.”

“Peninsula is broadening its biofuel supply network, positioning itself as the leading physical marine fuel supplier to offer comprehensive biofuel solutions across multiple regions and ports for our customers."

 

Photo credit: Peninsula and NYK
Published: 23 April 2024

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