Malaysia-listed Straits Inter Logistics Berhad (Straits), the parent of Tumpuan Megah Development Sdn Bhd (Tumpuan Megah), on Wednesday (25 November) posted a 66% fall in its third quarter (Q3) 2020 net profit due to reduction in revenue from the oil trading & bunkering services, due to Covid-19 related economic restrictions.
Straits recorded net profit of MYR 0.75 million (USD 184,026) in Q3 2020, compared to net profit of MYR 2.20 million (USD 539,811) during Q3 2019, showed its latest financial statement.
The group said its revenue for the current quarter decreased by 28.6%, a MYR 64.5 million drop to MYR 161.2 million as compared to MYR 225.7 million recorded in the corresponding quarter of the previous year.
Specifically, segment revenue from the company’s oil trading and bunkering services was MYR 157.3 million in Q3 2020, representing a 29.9% drop from revenue of MYR 224.7 million in Q3 2019.
“The reduction in revenue is mainly because of the COVID-19 pandemic that hit the shipping industry worldwide including Malaysia,” explained the company.
“The Malaysian Government has announced the Recovery Movement Control Order (RMCO) in early June where more activities were allowed subject to social distancing.
“Therefore, the oil trading & bunkering services segment and inland transportation & logistics segment has seen an improvement in revenue of MYR 85.5 million and MYR 0.5 million respectively compared to the preceding quarter.
“However, the economy of the country was still in a recovering stage compared to previous year.
“The decrease in profit was mainly due to lower profit contribution by the oil trading & bunkering services segment and initial setup cost incurred by the port management segment of MYR 2.2 million and MYR 0.7 million respectively.”
In line with the group’s business strategy to further expand its bunkering services and supply of Marine Fuel Oil, it had on 24 July, 2020, through Beluga Asia Ltd, a wholly-owned subsidiary of Tumpuan Megah, entered into a Memorandum of Agreement to acquire a bunker vessel, M.T. Veronica for a purchase consideration of MYR 10.4 million (USD 2.45 million).
The company said the acquisition will enlarge the vessel fleet capacity of the group and would provide flexibility in respect of its allocation and utilisation of vessels in undertaking the business segment.
Related: Straits Inter Logistics subsidiary SMF Eden acquires “M.T. MO Satu” bunker tanker for USD 4.5 million
Related: Straits Inter Logistics sees 67.8% fall in Q2 2020 profit due to Covid-19 related impact
Related: Straits Inter Logistics subsidiary Beluga Asia acquires bunker tanker to increase service availability
Related: Straits Inter Logistics IMO 2020 strategies contribute 141.2% jump in revenue for Q1
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 Berhad
Published: 30 November, 2020
Draft ‘2020 Guidelines for sampling of fuel oil intended to be used or carried for use on board a ship’ recently agreed at PPR 7.
Suggests eight questions for fuel buyers to consider before entering a binding bunker contract.
Total bunker sales at Panama was 460,051 metric tonnes (mt) in May, compared to sales of 386,955 mt during the similar period in 2020.
Acquires U.S. East Coast storage assets of Crown Point International in USD $107 million deal.
Creditors of K.S. Marine are required to submit particulars of their debts or claims in writing, by their solicitors or personally, on or before 30 November 2020.
New Gavia 4050 and Larus 2040 lubricants designed for marine diesel engines using VLSFO fuels, it says.
Session will provide insights on bunker quality issues from a bunker supplier, shipping company and surveyor, as well as providing insight and guidance on legal and dispute resolution issues.
Gealubes Consulting & Trading, the authorised marine business distributor of PANOLIN EALs at Singapore port, shares a two-part education series on Environmentally Acceptable Lubricants on Manifold Times.
Danny Lee Chee Keong was sentenced to nine months’ imprisonment over the theft of MFO from the Consort Bunkers owned and operated bunker tanker at the sea off Eastern Petroleum ‘B’ anchorage.
‘Metcore’s MFM+ Program exemplifies serious oil suppliers and buyers who advocate fair trading using a recognised and widely-accepted technology,’ highlights Darrick Pang, Managing Director of Metcore.
‘The victim is Consort Bunkers Pte Ltd, the owner of the Pearl Melody,’ states the joint statement of facts (SOF) document obtained by Singapore bunkering publication Manifold Times.
Between November 2016 and October 2017, Mr Tan falsified at least 20 invoices and submitted these invoices to UOB and OCBC, according to court documents obtained by bunkering publication Manifold Times.
