Malaysia-listed bunkering firm Straits Inter Logistics (Straits) on Thursday (30 May) posted a 114% increase in net profit for the first quarter (Q1) of 2019 due to a gain in revenue from operations related to oil bunkering and trading in oil products.
It recorded net profit of RM 1,356,000 (US $323,000) in Q1 2019 up from profit of RM 634,000 in Q1 2018, according to the latest financial statement.
Revenue from operations in Q1 2019 was RM 108.76 million, up 109% from revenue of RM 36.44 million in Q1 2018.
“In line with the Group’s plan to build sustainable revenue stream consisting of oil bunkering and trading in oil products, it has managed to increase its revenue for the first quarter of 2019 by RM72.32 million to RM108.76 million, from RM36.44 million achieved in the first quarter of 2018,” Straits explained.
“The substantial jump in revenue is mainly due to the consolidation of the results of its 55.0% owned subsidiary, Tumpuan Megah Development Sdn Bhd (Tumpuan Megah).
“The Group achieved a profit before tax of RM2.58 million in the first quarter of 2019 as compared to RM0.58 million in first quarter of 2018.
“The 346.6% jump in profit before tax for the first quarter of 2019 as compared to the first quarter of 2018 was attributable to both the revenue and gross profit margin improvement which increased by 198.4% and 66.4% respectively, and profit contribution from its newly acquired 38.0% associate, Banle Energy International Ltd (Banle).”
In February 2019, Straits incorporated two indirect wholly-owned subsidiaries, namely SMF Begonia Ltd and SMF Ixora Ltd., via its wholly-owned subsidiary Straits Marine Fuels & Energy Sdn Bhd (SMF) in Labuan.
The similar month saw Straits divesting an 30.0% equity interest to Straits Alliance Transport Sdn Bhd (SAT) company head Chai Yiing Jen.
It also completed the acquisition of 38.0% equity interest in Banle Energy International Limited (Banle) during February.
On 23 April 2019, Straits incorporated SMF in Singapore to provide in-house vessel and marine management services to its fleet of vessels which is now outsourced to external parties.
On 6 May 2019, the group entered into a Heads of Agreement (HOA) with Elsa Energy Sdn Bhd (Elsa) to facilitate negotiations and collaborations as well as to explore potential acquisition opportunities between Straits and Elsa.
“With the completion of the above acquisitions and new business setups, the Group’s outlook for 2019 is positive,” it states.
Related: Maybank IB Research: ‘Buy’ for bunker firm Straits Inter Logistics
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Related: Straits Inter Logistics makes land logistics expansion
Related: Straits Inter Logistics meeting approves Banle Energy acquisition
Related: Straits Marine Fuels & Energy acquires two bunker tankers
Related: Straits Inter Logistics ends 2018 with 61% profit increase
Photo credit: Straits Inter Logistics
Published: 31 May, 2019
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