Malaysia-listed Straits Energy Resources (SER), formerly known as Straits Inter Logistics, posted a 21% growth in profit for the quarter ended 30 June 2021 (Q2 2021) due to a ramp up of activities from its oil trading and bunkering services segment.
The company recorded net profit of RM 1.14 million (USD 270,000) in Q2 2021, an increase from net profit of RM 942,000 in Q2 2020.
Its revenue in Q2 2021 was RM 161.9 million, up approximately 215% from revenue of RM 75.2 million recorded in the corresponding quarter of the previous year.
“The [overall revenue] increase was substantially attributed to the oil trading & bunkering services segment due to the recovery of the maritime industry and global oil price compared to the corresponding quarter where the country was in stricter movement control order (MCO) throughout the quarter,” it explained.
“The revenue from this segment increased by RM161.0 million.”
SER on 30 July received a letter of approval (LOA) from Marine Department Malaysia for the development of a Ship to Ship (STS) Energy Transhipment Hub to provide and carry out liquid cargo transfer activities.
“The new business is estimated to commence by fourth quarter of 2021 and the Group aims to be a major player in the Sustainable and Alternative Energy industry in addition to its current fuel bunkering and port operation business,” it updates.
On 5 July 2021, the Group announced subsidiary Tumpuan Megah Development Sdn Bhd (TMD) to be collaborating with Petronas Dagangan Berhad to provide marine fuel oil to vessels within all ports in Malaysia.
“This collaboration will be value-adding to both parties to extend its business coverage,” it states.
Moving forward, SER believes the COVID-19 pandemic continuing to pose challenges to the global business environment since its outbreak in March 2020.
“The economy outlook remains highly uncertain with the continuous mutation of the COVID-19 virus and more movement control are expected to be reimposed to break the chain of infection,” it forecasts.
“With the majority of the Group’s businesses being classified as essential services, the Group will be able to continue operating and concurrently complying with the Standard Operating Procedures (SOP) to ensure the safety and wellness of its employees and also to ensure the continuous growth and smooth execution of its expansion programs.
“Nonetheless, the Board of Directors and management of the Company are closely monitoring the impact of this pandemic on the Group’s result from time to time and to ensure appropriate risk mitigation measures are undertaken to preserve value and protect shareholders’ interests.”
Related: Straits Inter Logistics undergoes name change to Straits Energy Resources
Related: Tumpuan Megah Development to collaborate with Petronas for bunker deliveries
Related: Straits Inter Logistics receives government approval to develop STS hub
Related: Straits Inter Logistics subsidiary to become STS operator at Victoria Bay, Labuan
Related: Malaysia: Straits Inter Logistics gears up for USD 3.6 million STS hub project
Related: Malaysia: Straits Inter Logistics posts 26% rise on year in profit for Q1 2021
Photo credit: Straits Energy Resources
Published: 31 August, 2021
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