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.
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Photo credit: Straits Inter Logistics Berhad
Published: 28 August, 2020
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