Maybank IB Research on Monday (25 March) issued a ‘buy’ rating for Malaysia-listed bunkering firm Straits Inter Logistics (SIL) with a recommended share price target of 38.5 sen (40% up from current share price of 27.7 sen).
“SIL is one of the very few licensed bunker operators in a fragmented and unregulated environment in Malaysia,” it states in a report.
“We posit that SIL’s investment angle emanates from: (i) rising upstream activities in Malaysia, (ii) structural changes to the bunkering business and (iii) the step-up in enforcement of illegal bunkering activities.
“SIL offers a solid growth for an under-the radar micro stock (market cap MYR169m).”
The report notes of SIL’s target customers to be mainly OSV operators, which accounts for 70% of its customer base.
“We are encouraged that most of the domestic O&G activities, across the services value chain, is on the rise,” it explains.
“This is premised on PETRONAS’ latest Activity Outlook (2019-21) report vis-à-vis its 2018-20 issue a year ago.
“SIL is a direct beneficiary from this development, especially in the OSV segment, which consumes MGO for its bunker requirement.”
SIL current owns and operates nine Malaysia-flagged bunkering vessels ranging from 530 DWT to 4,700 DWT and delivers low sulphur marine gas oil (LSMGO) to nine locations in Malaysia.
Manifold Times on Wednesday (20 March) reported SMF allegedly acquiring two bunker tankers.
SIL ended financial year 2018 with a 61% increase in net profit.
Related: Straits Marine Fuels & Energy to welcome ‘identified parties’ as partner
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: 27 March, 2019
Significant uptick in the number of quality claims being alleged by ship owners has also been seen since the implementation of contactless bunkering operations, notes Partner at Rajah & Tann.
‘The launch of our company website signifies the readiness of Singfar to engage with relevant stakeholders to achieve our mission of enabling sustainable trade,’ Managing Director tells Manifold Times.
Associate Director at Helmsman highlights the need to stay up-to-date with latest protocols / measures introduced by MPA, with continuous education of Master and crew of the visiting vessel.
BunkerPlanner Lite is an attempt to educate professionals engaged in bunker decisions about the use of advanced technology in the decision process, explains BunkerMetric CEO Christian Plum.
Senior Associate at Clyde & Co offers guidance to protect shipowners and bunker tanker operators in the event opposing counterparty breaches Covid-19 protocols, resulting in Covid-19 transmission.
Having a surveyor’s watchful eye to detect illegal activities also sends a strong signal to barge and vessel crew not to undertake any intended non-compliance, states VPS Senior Sales Manager.