Malaysia-listed Straits Inter Logistics Berhad (SIL), principally engaged in oil trading, bunkering and investment holding activities, on Thursday (25 June) posted its revenue for current quarter (Q1 2020) increased by 141.2% compared to a similar quarter in 2019.
The total revenue for Q1 2020 was RM 262.4 million (USD 61.3 million), marking a RM 153.63 million (USD 35.9 million) jump from RM108.8 million (USD 25.4 million) in Q1 2019.
The company recorded net profit of RM 1.02 million in Q1 2020, a decrease of 24.5% as compared to RM 1.36 million of Q1 2019.
Profit before tax (PBT) in the first quarter was RM 1.8 million, down 31.2% against RM 2.6 million in Q1 2019.
“The expansion in revenue was attributable to more bunkering jobs being secured to provide Low Sulphur Fuel Oil (LSFO) as a result of the IMO 2020 sulphur cap effective 1 January, 2020,” explained SIL.
“The decrease in PBT was due to loss of RM0.7 million incurred in the Inland Transportation & Logistics segment and an initial start up cost of RM0.5 million in the Port Management segment.
“However, a 26% improvement in its share of profits from its associate company had contributed a profit of RM0.4 million to partially offset these losses.”
Apart from the sulphur cap, the group also attributed the increase in revenue to the commencement of bunkering services by the newly acquired vessel, M.T. SMF Ixora.
The group’s strategy from the previous quarter to increase revenue and diversify revenue streams has proved effective but narrowing bunker price spreads in Q1 2020 has affected profit margins.
“Although the majority portion of the Group’s activities are considered as essential operations, the COVID-19 pandemic may possibly have financial implications to the Group,” it added.
“Nonetheless, the Board of Directors of the Company are closely monitoring the impact of this pandemic on the Group’s result and to ensure appropriate risk mitigating measures are undertaken to preserve value and protect shareholders’ interests.”
Related: Straits Inter Logistics concludes FY 2019 with ‘commendable performance’, says Chairman
Related: Straits Inter Logistics concludes FY 2019 with 75% jump in net profit
Related: Bursa Malaysia approves Straits Inter Logistics acquisition of Tumpuan Megah
Related: Straits Inter Logistics meeting approves Banle Energy acquisition
Related: Malaysia: Straits Inter Logistics makes land logistics expansion
Related: Straits Inter Logistics takes over operation and management of Labuan Liberty Terminal
Photo credit: Straits Inter Logistics
Published: 28 June, 2020
OctamarTM HF-10 Plus was subjected to tests conducted at a third party lab by SGS Testing and Intertek in Singapore under the supervision of ClassNK earlier this year, according to spokeswoman.
Former Regional Marine Manager of BP Singapore issued penalty of SGD 6 million; he faces an additional 28-month imprisonment term if penalty is not paid, says Judge.
Sing Fuels claiming over total 1,049.29 metric tonnes of 380 centistokes bunker fuel delivered to bulk carrier Lila Shanghai at Port Elizabeth, South Africa in July 2019, according to court documents.
Reserve Stability Number results are ‘questionable’ as almost all additives targeting asphaltene management show effectiveness in the test, says spokesman.
Singfar International partnering Lianyungang Shenghua Shipbuilding to deliver 7,000 dwt DF bunker tankers from 2023 to support decarbonisation of the Singapore maritime industry.
GSM awarded USD 1.85 million as well as SGD 5,800; Judge finds SFM Director ‘ungrateful and dishonest in his dealings with Bernard and the plaintiff,’ according to Court Judgement seen by Manifold Times.