Malaysia-listed Straits Energy Resources (SER), formerly known as Straits Inter Logistics, on Monday (28 February) posted a 11.8% on year increase in net profit during its financial year of 2021 (FY 2021) spurred by its oil trading & bunkering services segment expanding its footprint into Port Klang, amidst increasing global oil prices and the continuous recovery in the maritime industry.
The company recorded net profit of RM 4.44 million (USD 1.06 million) in FY 2021, more than net profit of RM 3.98 million during FY 2020; its revenue in FY 2021 was RM 1.32 billion, a 95% increase from RM 675.32 million in FY 2020.
The Group’s revenue in the fourth quarter of 2021 (Q4 2021), meanwhile, surged by RM 269.1 million to RM 445.6 million, from RM 176.5 million recorded in the corresponding quarter of the previous year.
“The increase was substantially contributed by the oil trading & bunkering services segment which had expanded its market coverage into Port Klang, apart from benefiting continuously from the recovery of the maritime industry and rising global oil prices,” it explained.
“Revenue generated from inland transportation had almost doubled to RM 1.6 million in the current quarter as the construction industry picked up on the back of the Malaysian economy recovering from the COVID-19 Pandemic.
“However lower revenue was generated by our port management segment due to quarantine implementation by Kementerian Kesihatan between October and November 2021 on Labuan Port. The revenue from the vessel management segment also dropped due to less vessels calling into Singapore Port.”
Oil Trading & Bunkering Services
SER’s oil trading and bunkering services segment saw profit before tax of RM 11.12 million in FY 2021, 52% up from profit before tax of RM 7.29 million in FY 2020; revenue for the similar segment was RM 1.30 billion in FY 2021, a 97% increase from revenue of RM 662.24 million in FY 2020.
In line with the Group’s business strategy to further expand its bunkering services and supply of marine fuel oil (MFO), SER had on 15 October 2021, through its 51% indirect-owned subsidiary, SMF Beluga Ltd, entered into a Bareboat Charter Hire Agreement to acquire a vessel, namely M.T. Empower for a purchase consideration of USD3.5 million. This vessel has since been renamed as M.T. SMF Beluga.
The Group via its indirect subsidiary, Victoria STS (Labuan) Sdn Bhd (Victoria) had on 12 July 2021 received a letter of approval (LOA) from Marine Department Malaysia for the development of Ship to Ship (“STS”) Energy Transhipment Hub to provide and carry out liquid cargo transfer activities.
The Group is looking to widen its business coverage into the STS operations and Victoria is scheduled to commence operation in second quarter of 2022. The Group aims to be a major player in the Sustainable and Alternative Energy industry in addition to its current fuel bunkering, vessel management, inland transportation and port operation business.
Related: Straits Energy Resources and Fendercare Marine to promote Labuan STS services
Related: Straits Energy Resources Q3 2021 profit increases to RM 1.94 million on bunkering gains
Related: Malaysia: Straits Energy Resources adds “Empower” to bunkering fleet
Related: Straits Energy Resources records 21% profit increase; backed by 215% revenue growth
Related: Straits Inter Logistics undergoes name change to Straits Energy Resources
Related: Straits Inter Logistics receives government approval to develop STS hub
Photo credit: Straits Energy Resources
Published: 1 March, 2022
Cash of SGD 4.43 million and USD 243,100, and one piece of 100-gram gold-coloured bar recovered in safe belonging to Abdul Latif Bin Ibrahim kept at Extra Space warehouse storage facility, show court documents.
Program introduces periodic assessments, mass flow metering data analysis, and regular training for relevant key personnel to better handle the MFMS to ensure a high level of continuous operational competency.
U.S. Claims Register Summary recorded a total USD 833 million claim from a total 180 creditors against O.W. Bunker USA, according to the creditor list seen by Singapore bunkering publication Manifold Times.
Glencore purchased fuel through Straits Pinnacle which contracted supply from Unicious Energy. Contaminated HSFO was loaded at Khor Fakkan port and shipped to a FSU in Tanjong Pelepas, Malaysia to be further blended.
Individuals were employees of surveying companies engaged by Shell to inspect the volume of oil loaded onto the vessels which Shell supplied oil to; they allegedly accepted bribes totalling at least USD 213,000.
MPA preliminary investigations revealed that the affected marine fuel was supplied by Glencore Singapore Pte Ltd who later sold part of the same cargo to PetroChina International (Singapore) Pte Ltd.