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Malaysia: Straits Inter Logistics posts 26% rise on year in profit for Q1 2021

02 Jun 2021

Malaysia-listed Straits Inter Logistics Berhad (SIL), the parent of bunkering firm Tumpuan Megah Development Sdn Bhd (TMD), on Monday (31 May) posted a 26% rise on year in profit, it said.

It recorded profit of MYR 1.929 million (USD 470,000) for the quarter ended 31 March 2021 (Q1 2021), up from profit of MYR 1.525 million during Q2 2020.

The company’s revenue for Q1 2021 rose 12.5% to MYR 295.2 million.

“The Group’s revenue in the current quarter increased by RM32.8 million to RM295.2 million from RM262.4 million recorded in the corresponding quarter of the previous year,” it said.

“The increase was substantially attributed to oil trading & bunkering services segment due to the recovery of oil price compared to the corresponding quarter of the previous year.

“As a result, the revenue from this segment increased by RM29.1 million. The port management operation which commenced its operation in April 2020 had generated a revenue of RM3.7 million in the current quarter.”

On 15 January 2021, Straits Marine Fuels & Energy Sdn Bhd (SMF), a 67% owned subsidiary of the Company, incorporated Sierra Pioneer Marine Ltd (Sierra) in Labuan; Sierra on 16 February 2021 entered into a Memorandum of Agreement with Ocean World Inc to acquire a vessel, named M.T. Guo Kang No.1 for a purchase consideration of USD1,600,000.

The acquisition of M.T. Guo Kang No.1 is to expand the business of the Group especially in the supply of High Sulphur Fuel Oil (HSFO) to cater for the increasing demand of HSFO in Malaysia.

On 7 April 2021, Straits Marine Services Pte Ltd (SMS), a 51% owned subsidiary of the Company, incorporated a wholly owned subsidiary, namely Straits Maritime Services Pte Ltd (SMT) in Singapore; the intended activity of SMT is in provision of general cleaning services (excluding household cleaning).

On 14 April 2021, TMD received a sealed Order dated 22 March 2021 and undated Notice of Registration of Foreign Judgement representing an attempt by the Claimants to enforce an English Judgement for USD937,353 with interest and cost of which TMD has disputed jurisdiction.

Accordingly, TMD is taking steps to strenuously resist this attempt to enforce an invalid arbitration award issued without jurisdiction and TMD’s solicitors had on 27 April 2021 filed an application to the High Court of Malaya, Kuala Lumpur to set aside the earlier mentioned sealed Order and undated Notice of Registration of Foreign Judgement.

Notwithstanding the ongoing arbitration which commenced on 2 May 2017, the Vendor (Raja Ismail Bin Raja Mohamed) via an irrevocable Personal Guarantee dated 30 April 2020 had undertaken to indemnify the Company against the liabilities of TMD arising from the arbitration and shall promptly pay such liabilities upon receipt of a payment demand from the Company and accordingly, no provisions have been made in the financial statements.

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Photo credit: Straits Inter Logistics Berhad
Published: 2 June, 2021

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