Connect with us

Business

Malaysia: Straits Energy Resources net profit up 11.8% on bunkering expansion

Revenue of Malaysia-listed Straits Energy Resources crossed the RM 1 billion mark for the first time in the company’s history, learned Manifold Times.

Admin

Published

on

post 52489

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

Continue Reading

Business

Shell MGO bunker heist: Bunker clerk pleads guilty to helping Sentek acquire misappropriated fuel

Wong Wai Meng, who received more than USD 286,000 from Sentek Marine & Trading for his assistance, pleaded guilty to 12 counts of intentionally helping the firm acquire the misappropriated marine gas.

Admin

Published

on

By

RESIZED Ekaterina Bolovtsova on PEXELS

A bunker clerk, Wong Wai Meng, who received more than USD 286,000 (SGD 384,681) from Singapore-based Sentek Marine & Trading (Sentek) for his assistance, pleaded guilty to 12 counts of intentionally helping the company acquire misappropriated marine gas oil, The Straits Times reported on Friday (29 November).

The 58-year-old Singaporean was employed at the Sentek when he assisted in acquiring more than 28,000 metric tonnes (mt) of the misappropriated fuel worth USD 13.58 million (SGD 18.26 million). 

Wong committed the offences over 46 occasions between August 2014 and December 2017.

Wong is among the three bunker clerks previously employed by Sentek, who were charged for offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) and the Prevention of Corruption Act (PCA).

Another bunker clerk among the three charged, Wong Kuin Wah, 61, was sentenced to seven years and six months’ jail on 18 November for his role in misappropriating more than 27,000 tonnes of gas oil worth around USD 12.8 million (SGD 17.2 million).

The third individual who was charged, Boo Pu Wen, reportedly passed away in July 2023 and had his charges abated following his death, meaning Boo’s court proceedings over his 19 charges at the time came to an end. 

Former Shell employees, who were key members of a group who dishonestly misappropriated fuel from Shell Pulau Bukom, were sentenced to jail in court earlier.

Earlier coverage of developments by Manifold Times regarding the Shell MGO bunker heist can be found below:

Related: Shell MGO bunker heist: Ex-Shell employees sentenced to more than 23 years in prison each
Related: Shell MGO bunker heist: Ex-Shell employees plead guilty to multiple offences
Related: Shell MGO bunker heist: Ex-Shell employee receives over 16-year jail sentence
Related: Shell MGO bunker heist: Ex-Intertek Surveyor sentenced to four months’ jail for corruption
Related: Shell MGO bunker heist: Ex-Intertek Surveyor pleads guilty to corruption charge
Related: Shell MGO bunker heist: Shell Process Technician receives 195-month jail sentence
Related: Shell MGO bunker heist: Police seize property, cars, watches from ex-Shell Bukom Process Technician
Related: Shell MGO bunker heist: Ex-Shell blending specialist jailed over USD 956,000 worth of misappropriated gasoil
Related: Shell MGO bunker heist: Former Intertek, Inspectorate surveyors receive fines, jail sentences
Related: Shell MGO bunker heist: Ex-CCIC Singapore surveyor pleads guilty to misconduct, receiving USD 12k in bribes
Related: Shell MGO bunker heist: Ex-Process Technician receives 184-month prison sentence over illicit involvement
Related: Shell MGO bunker heist: Syndicate member’s nephew jailed over concealment of safe containing valuables
Related: Shell MGO bunker heist: 12 former surveyors from Intertek, Inspectorate, CCIC, SGS charged for corruption
Related: Shell MGO bunker heist: Former Shore Loading Officer receives 29-year jail sentence over total 85 charges
Related: Shell MGO bunker heist: Ex-Process Technician received minimum SGD 735,000 in benefits, faces 43 charges
Related: Shell MGO bunker heist: Ex-Shell employee admits leading role in illicit operation
Related: Shell MGO bunker heist: Sentek ex-Director faces 40 fresh charges
Related: Shell MGO bunker heist: Two former Shell employees jailed over theft
Related: Shell MGO bunker heist: High Court affirms ‘Prime South’ forfeiture to Singapore State
Related: Shell MGO bunker heist: Three ex-Shell employees charged with bribing surveyors
Related: Shell MGO bunker heist: Second ex-Shell employee pleads guilty to nine charges
Related: Shell MGO bunker heist: First ex-Shell employee to plead guilty over involvement
Related: Shell MGO bunker heist: Director of Singapore bunkering firm released from police custody
Related: Shell MGO bunker heist: Oil tanker ‘Prime South’ forfeited by State Courts of Singapore
Related: Shell MGO bunker heist: Director of Singapore bunkering firm face charge at State Courts
Related: Shell Singapore oil heist: Third offender pleads guilty for gas oil theft
Related: Captain of “Prime South” jailed in Shell Pulau Bukom gas oil theft
Related: Shell Singapore oil heist: Ex-Chief Officer of Prime South jailed
Related: Singapore: Shell MGO bunker heist amount balloons to USD$142 million
Related: Shell MGO bunker heist update: Fresh charges issued at Singapore court
Related: Shell Singapore oil heist: More charges issued at court
Related: Shell Singapore oil heist: Breakdown of stolen oil cargoes
Related: Intertek Singapore employee among Shell oil heist suspects

 

Photo credit: Katrin Bolovtsova
Published: 2 December, 2024

Continue Reading

Biofuel

Singapore: GCMD introduces new technique for FAME bio bunker fuel fingerprinting

Fingerprinting identifies feedstock origins of FAME-based biofuels used in shipping industry; can be used as a potential tool to detect fraud in marine fuel supply chains and ensure biofuel authenticity.

Admin

Published

on

By

Singapore: GCMD introduces new technique for FAME bio bunker fuel fingerprinting

The Global Centre for Maritime Decarbonisation (GCMD) on Monday (2 December) released its latest report, presenting a new technique that creates a fingerprint for Fatty Acid Methyl Esters(FAME) bio bunker fuels.

This fingerprint identifies the feedstock origins of the FAME-based biofuels used in the shipping industry.

GCMD said FAME fingerprinting is needed as the shipping sector is increasingly using biofuels, such as FAME, to reduce its GHG emissions. With that, concerns have arisen regarding the legitimacy of biofuels and whether they are truly sustainable. 

Industry bodies are seeing a rising number of cases mislabelling biofuels purported to be made from recycled oils and fats, while suspicions persist that they might be produced from cheaper and less sustainable virgin oils.

“To address these concerns, FAME fingerprinting can be used as a potential tool to detect fraud in marine fuel supply chains and ensure biofuel authenticity. By providing a physical validation method that complements existing certification schemes, FAME fingerprinting can help justify the green premium with genuine environmental benefits and safeguard the integrity of marine fuels supply chain,” GCMD said. 

FAME fingerprinting is based on the principle that the fatty acid profile of FAME is unique to its feedstock and can be preserved during feedstock transesterification to produce FAME. The "fingerprint" can then be compared against a database of known fatty acid profiles to identify the feedstock origin. 

GCMD worked with VPS who modified existing fuel testing methods to carry out sample analyses using a gas chromatograph with flame-ionisation detection, an instrument commonly found in fuel test laboratories. 

The analysis takes about an hour, comparable to the turnaround time for current marine fuel quality testing in the supply chain. 

“We have tested this method on a variety of FAME samples from different suppliers, including virgin oils, used cooking oils, palm oil mill effluent, beef tallow and food waste and were able to identify the feedstock origins for each sample,” GCMD added.

Manifold Times previously reported Captain Rahul Choudhuri, President, Strategic Partnerships at marine fuels testing company VPS, forecasting the use of finger printing technology today will likely establish a blueprint of how future alternative bunker fuels’ feedstocks are authenticated.

Captain Choudhuri said this when he gave an update of VPS’ biofuels finger printing trials with GCMD.

Note: The full report, titled ‘Rapid forensic analysis of FAME-based biofuels: Potential use of its fingerprint as a fraud detection tool’, can be downloaded here

Related: Marine Fuels 360: Fingerprinting to play key role in proving biofuel feedstock authenticity and beyond, says VPS
Related: GCMD-led consortium completes trials of sustainable biofuel bunker supply chains
Related: Dr. Nicholas Clague shares VPS’ experience with alternative bunker fuels
Related: Dubai: Shipowners and peers discuss realities of biofuel adoption at VPS Biofuels Seminar
Related: Singapore: VPS panel discussion presents a masterclass in shipping’s biofuel bunker adoption issues to the deck

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 2 December, 2024

Continue Reading

Methanol

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

Korean firm’s MoU with AE Risinājumi will see construction of Latvia’s first commercial-scale green methanol production plant, which will supply green methanol to ships in EU’s maritime fleet.

Admin

Published

on

By

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

South Korean clean energy firm PLAGEN on Friday (29 November) signed an MOU with Latvian company, AE Risinājumi, for the production of green methanol in Latvia at the “2024 Latvia-Korea Business Forum” hosted by the President of Latvia.

The agreement will result in the construction of Latvia's first commercial-scale green methanol production plant, which will supply green methanol to ships in the EU's maritime fleet, contributing to the reduction of greenhouse gas emissions from maritime transportation.

PLAGEN's MoU aims to produce 20,000 metric tonnes (mt) of green methanol per year and will begin feasibility studies in the first half of 2025, and full-scale production will begin in 2028.

With 53% of Latvia's land area covered by forests, timber production and wood processing make a significant contribution to Latvia’s economic production, which generates a large amount of forest residues and wood wastes. In addition, Latvia also has an abundance and low price of renewable electricity from wind power. 

Latvia is one of the most competitive countries in the European Union, as it can produce clean methanol at a competitive price by using abundant wood waste as a raw material and renewable electricity from cheap wind power.

The use of abundant forest residues and wood wastes as a feedstock and cheap renewable electricity from wind power makes it possible to produce green methanol with a competitive price, making Latvia is one of the most competitive countries in the EU.

In the European Union, the European Emissions Trading Scheme (EU-ETS) will come into effect in 2025, requiring shipping companies to purchase carbon credits for their greenhouse gas emissions.

In addition, the EU is implementing FuelEU Maritime, which aims to reduce greenhouse gas emissions by 2% below the 2020 average by 2025 and 80% by 2050. This is expected to result in an energy transition to green methanol.

In July 2023, the International Maritime Organization (IMO) adopted a revised strategy that calls for reducing greenhouse gas (GHG) emissions from ships to net-zero by or around 2050, and plans to introduce full-scale regulations from 2027, and shipping companies have begun ordering methanol-powered ships fueled by green methanol, a carbon-neutral fuel.

“We expect to start producing green methanol in Latvia in 2028, which will reduce greenhouse gas emissions from EU maritime transport vessels and contribute significantly to the revitalization of the Latvian economy and national energy security,” said John Kyung, CEO of PLAGEN.

In November 2024, PLAGEN completed the purchase of an industrial complex and received a government permit for the construction of the country's first green methanol plant in Dongjeom Industrial Complex in Taebaek City, Gangwon-do. 

The project, which will produce 10,000 mt per year, is scheduled to begin construction in the first half of 2025 and begin production in the second half of 2027.

Related: Korea: Taebaek City and PLAGEN to build green methanol bunker fuel plant
Related: Korean firm PLAGEN plans green methanol production project for bunkering

 

Photo credit: PLAGEN
Published: 2 December, 2024

Continue Reading
Advertisement
  • RE 05 Lighthouse GIF
  • SBF2
  • v4Helmsman Gif Banner 01
  • EMF banner 400x330 slogan
  • Consort advertisement v2
  • Aderco advert 400x330 1

OUR INDUSTRY PARTNERS

  • Triton Bunkering advertisement v2
  • SEAOIL 3+5 GIF
  • 102Meth Logo GIF copy
  • Singfar advertisement final
  • HL 2022 adv v1


  • Kenoil
  • Synergy Asia Bunkering logo MT
  • PSP Marine logo
  • Uni Fuels oct 2024 ad
  • Auramarine 01
  • Cathay Marine Fuel Oil Trading logo
  • E Marine logo
  • Mokara Final
  • Innospec logo v6
  • Central Star logo
  • 400x330 v2 copy
  • Headway Manifold
  • VPS 2021 advertisement
  • Advert Shipping Manifold resized1

Trending