Malaysia-listed Straits Inter Logistics Berhad (Straits), the parent of Tumpuan Megah Development Sdn Bhd (Tumpuan Megah),on Friday (28 August) posted a 67.8% fall in its second quarter (Q2) 2020 net profit due to reduction in revenue from the oil trading & bunkering services, and inland transportation & logistics segments.
Straits recorded net profit of MYR 0.94 million (USD 225,176) in Q2 2020, compared to net profit of MYR 2.93 million (USD 701,880) during Q2 2019, showed its latest financial statement.
Its overall revenue fell to MYR 75.2 million (USD 18 million) in Q2 2020, from MYR 125.2 million (USD 30 million) in Q2 2019.
Specifically, segment revenue from the company’s oil trading and bunkering services was MYR 71.9 million in Q2 2020, representing a 42% drop from revenue of MYR 124.2 million in Q2 2019.
Profit before tax for the similar segment is recorded at MYR 1.4 million in Q2 2020, versus MYR 3.7 million in Q2 2019.
“The oil trading & bunkering services segment was hit by both the COVID-19 pandemic and the sharp deterioration of global oil price, resulting in a significant decrease in revenue and profit before tax, as compared to the preceding quarter,” it explained.
“The drop of profit from this segment was offset by contribution from the port management segment which registered a revenue and PBT of MYR 3.1 million and MYR 1.0 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 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: 28 August, 2020
MPA adopts IMO and ILO set medical examination and certification for seafarers as national requirements in order to work onboard Singapore-registered ships.
Creditors are to produce proofs of debt to liquidators of Southernpec (Singapore) Shipping Pte Ltd by 6 June 2022, according to latest Government Gazette notice.
Named Sakura Leader, the vessel was ordered by Shin-Kurushima Dock Co and is already engaged for service, including vehicles for Toyota Motor Corporation.
‘Short bunker deliveries’ remain prevalent in Rotterdam and Fujairah – will likely be exacerbated by new, more expensive low carbon fuels entering market.
Los Angeles price assessment is for ex-wharf deliveries ranging between 500 to 3,000 mt; published daily in $/t; with delivery timing 2 to 7 days ahead.
VLSFOs have different characteristics which existing bench tests cannot fully evaluate, thus, many established bench tests have to be modified or replaced, it said.
KPI OC seeking to recover debt of USD 805,602.15 over five bunker deliveries, not including accrued interest of about USD 363,000 since 15 September, showed court documents obtained by Manifold Times.
Discussions around the need to develop methanol bunkering operations are taking place at numerous ports ahead of estimated demand of above 7M mtpa by 2030, says Chris Chatterton of Methanol Institute.
‘Economics of the shipping market will be the key driver enabling methanol to be adopted at a higher pace going forth over next couple years as market begins to return to more normal rates,’ states COO.
Integr8 Fuel injunction varied by Singapore Court to allow former employees to start work at Hartree Group in December 2022 following failure to produce evidence on biofuels development plans.
Variability of sources can affect the stability and performance of biofuel bunkers produced from these feedstocks, in turn leading to difficulties in meeting regulations and industry standards, shares Bryan Quek.
Top three positive movers in 2022 were Bunker House Petroleum Pte Ltd (+7), Eastpoint International Marketing Pte Ltd (+5), and Eng Hua Company (Pte) Ltd (+6); newcomer Sinopec Fuel Oil (Singapore) gets 19th spot.
