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

01 Mar 2022

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

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