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Malaysia: Straits Energy Resources profit up 24% on rise in oil cargo activity

01 Dec 2022

Malaysia-listed Straits Energy Resources (SER) posted a 24% on year increase in profit for the third quarter (Q3) of 2022 amid increased activity from its Oil Bunkering and Shipping Related Services segment.

The Group recorded profit before tax (PBT) of RM 2.40 million (USD 0.54 million) in Q3 2022, 23.7% up from profit of RM 1.94 million in Q3 2021, according to latest figures.

“The Oil Bunkering and Shipping Related Services segment has contributed a PBT increase of RM 3.2 million as cargo volume sold increased in line with its horizontal expansion as well with increase in global oil prices,” it stated.

“With the increased vessel callings at the port, the Port Operation & Management Segment’s PBT contribution too had increased by RM1.1 million during the current quarter.”

Overall revenue, meanwhile, rose 165.6% to RM 906.3 million from RM 341.2 million during the comparative quarters.

“The significant increase was mainly contributed by the Oil Bunkering and Shipping Related Services segment which increased by RM561.0 million as the cargo volume sold has increased by approximately 80%,” SER noted.

“In addition, there has been aggressive marketing efforts to increase its ports coverage and customers, coupled with the spike in global oil prices.”

SER in Q2 2022 completed a 90% acquisition in Sinar Maju Logistik Sdn Bhd (SML) and obtained a 51%-equity stake in Wire & Wireless Sdn Bhd (W&W) via Straits Technology Solutions Sdn Bhd, a 75% owned subsidiary of the Group.

“SML will be a vertical expansion of the Group’s Oil Bunkering and Shipping Related Services segment, which will allow the Group to offer a broader range of related services within the shipping operation, logistics and transportation sector to provide additional value to clients and enhance the revenue and earnings of Straits Group,” says SER.

“The Group is optimistic on the growth prospect for 2022 moving forward.”

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Photo credit: Straits Energy Resources
Published: 1 December, 2022

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