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Straits Energy Resources Q2 2022 profit increases to MYR 7.11 million on bunkering gains

30 Aug 2022

Malaysia-listed Straits Energy Resources Berhad (SER), formerly known as Straits Inter Logistics, on Monday (29 August) posted a rise in profit for the second quarter (Q2) of 2022 mainly due to increased revenue from its oil bunkering and shipping related services segment.

The company recorded profit before tax of MYR 7.71 million (USD 1.59 million) in Q2 2022, 397% higher than net profit of MYR 1.55 million during Q2 2021. 

Its overall revenue grew 249% on year in Q2 2022. 

“The Group’s revenue in the current quarter increased by RM590.5 million to RM827.6 million, from RM237.1 million recorded in the corresponding quarter of the previous year, representing an increase of 249%. 

“The significant increase was mainly contributed by the Oil Bunkering and Shipping Related Services segment which increased by RM590.1 million as a result of its market expansion into Port Klang and the spike in global oil prices,” it explained. 

Revenue for its oil bunkering and shipping segment in Q2 2022 is MYR 823.28 million compared to MYR 233.13 million in Q2 2021. 

The same segment posted a 388.4% on year increase in profit before tax to RM 9.28 million in Q2 2022 from 1.90 million in Q2 2021. 

For the period up to 30 June 2022, the Group had completed the acquisition of 90% equity interest in Sinar Maju Logistik Sdn Bhd (SML) and 51% equity interest in Wire and Wireless Sdn Bhd (W&W) via Straits Technology Solutions Sdn Bhd, a 75% owned subsidiary of the company.

SML will be a horizontal expansion of the Group’s port operation and facility management services, which will allow the Group to offer a broader range of related services within the port operation, logistics and transportation sector to provide additional value to clients and enhance the revenue and earnings of Straits Group.

The company, via its 70% indirect-owned subsidiary, Straits CommNet Solutions Sdn Bhd (SCS) is mobilising its resources to participate in the vast business opportunities of the 4G and 5G network solution rollout and the digitalisation transformation of the port, oil and gas industry through the Smart Technologies and Internet of Things (IoT) in Malaysia and regionally.

The acquisition of W&W will enable SCS to tap into W&W’s exposure in engineering services implementation and installation. Besides, W&W would be able to provide in-house engineering services to Straits’ Telecommunication and Networking division. 

Related: Victoria STS completes its first-ever STS crude oil transfer off Labuan
Related: Malaysia: Straits Energy Resources net profit up 11.8% on bunkering expansion
Related: Straits Energy Resources and Fendercare Marine to promote Labuan STS services
Related: Straits Energy Resources Q3 2021 profit increases to RM 1.94 million on bunkering gains
Related: Malaysia: Straits Energy Resources adds “Empower” to bunkering fleet
Related: Straits Energy Resources records 21% profit increase; backed by 215% revenue growth
Related: Straits Inter Logistics undergoes name change to Straits Energy Resources
Related: Straits Inter Logistics receives government approval to develop STS hub

 

Photo credit: Straits Energy Resources Berhad
Published: 30 August, 2022

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