Malaysia-listed bunkering firm Straits Inter Logistics (Straits) posted a 61% increase in net profit during the financial year (FY) ended 31 December 2018 on the back of several expansion developments.
It recorded net profit of RM $4.06 million in 2018, more than profit of RM $2.53 million in 2017.
Total revenue on 2018 was RM $255.79 million, 90% more than revenue of RM $134.57 million in the year before.
Straits completed the acquisition of 55.0% equity interest in Tumpuan Megah on 28 September 2018, expanding its fleet to nine vessels and total marine fuels capacity of 12.0 million litres. The acquisition of Tumpuan Megah comes with an aggregate profit after tax guarantee of RM $10.00 million for FY 2019 and FY 2020.
Straits also acquired 38.0% equity interest in Banle Energy International Limited (’Banle’) on 22 February 2019 in a move to tap on its infrastructure to expand its business to the Hong Kong and China market. The proposed acquisition of Banle comes with an aggregate profit after tax guarantee of US $1.65 million for FY 2019 and FY 2020.
The group on August 2018 incorporated Straits Alliance Transport Sdn Bhd (SAT) to carry out inland transportation and logistics business, which is in the onshore logistics services to provide transportation services by land, mainly through trucks and/or lorries.
“As the management of Straits exerts its efforts to expand the operation of its core business, which is in oil trading and oil bunkering services, the management of Straits is also exploring new business opportunities in land transportation and logistics business, with the objective of creating diversity in its product offerings within the logistics services as well as due to the demand arising among the existing customers of Straits Group to provide land transportation and logistics services,” it explains.
“The venture into land transportation and logistics services is purely a horizontal expansion of its existing business activities within the transportation and logistics sector, which serves to provide value added transportation and logistics services to the existing and potential customers.”
Straits in February 2019 welcomed an experienced land logistics player to head its newly formed transport subsidiary SAT.
During the same month, it further incorporated two indirect wholly-owned subsidiaries in Labuan, namely SMF Begonia Ltd and SMF Ixora Ltd.
Related: Bursa Malaysia approves Straits Inter Logistics acquisition of Tumpuan Megah
Related: Straits Inter Logistics meeting approves Banle Energy acquisition
Related: Straits Inter Logistics mulls land logistics move
Related: Straits Inter Logistics makes land logistics expansion
Photo credit: Straits Inter Logistics
Published: 1 March, 2019
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