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BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
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Straits Inter Logistics posts 63.4% revenue rise from oil trading and bunkering

24 Nov 2017 17:25 GMT

Malaysian firm expecting increase in bunker sales contribution in Q4 with the recent addition of two vessels.

Malaysia's Straits Inter Logistics Bhd, owner of marine fuel specialist Selatan Bunker (M) Sdn Bhd, reports that revenue from oil trading and bunkering during the third quarter (Q3) of 2017 rose year-on-year (YoY) by RM 12.79 million ($3.11 million), or 63.4 percent, to RM 32.96 million ($8.02 million).

The figure also represents the total revenue amount for the group, with no revenue recorded for consultancy services; general trading; and air filtration system, fast moving consumer product and ancillary support services.

Profit achieved from oil trading and bunkering increased YoY by RM 663,000 ($161,200), or 300 percent, to RM 884,000 ($215,000) in Q3.

Overall profit during the period was up YoY by RM 476,000 to RM 504,000 ($122,570) - lower than the profit achieved by the oil trading and bunkering segment due to a RM 380,000 loss recorded for the investment holding division.

Regarding the company's plans for the future, Straits said it intended to expand its oil trading and bunkering asset base, strengthen its operational capabilities and extend its geographical presence in order to capture "growth opportunities" in the Malaysian bunkering sector.

"The company will assess the demand from potential customers after undertaking its marketing activities and will utilize funds raised from its rights issue and internally generated funds to undertake the oil bunkering activities in the coming year," Straits explained.

Straits' subsidiary Selatan Bunker was launched in 2015. The company, which principally operates at the port of Pasir Gudang, commenced oil trading and bunkering via a collaboration agreement with Tumpuan Megah Development Sdn Bhd.

As previously reported by Bunker Index, last year, on September 5, the company obtained its Petroleum Development Act Licence from the Ministry of Domestic Trade, Cooperative and Consumerism, which effectively gave the company the go-ahead to start its bunker supply business.

Less than three months later, on November 14, Straits entered into an agreement with Sturgeon Asia Ltd and Straits Holdings Ltd - two companies in which recently appointed managing director Dato Sri Ho Kam Choy is also a director and shareholder. Straits acquired two bunkering vessels - Sturgeon 1 and Straits 1 - from the two firms, and also raised RM 21.15 million in a rights issue, of which RM 2.8 million was used to acquire the Straits 1.

In the release of its latest results, Straits explained that the two vessels commenced bunkering operations at Pasir Gudang in Q4 - in line with the prediction made by Ho in September.

"These vessels will be contributing earnings to Straits from the fourth quarter of this year. Following this, the contribution from bunkering will significantly increase," Ho had stated a couple of months ago.

Ho also said in September that he expects bunkering to make up around 90 percent of the company's business in the near future following the addition of the two supply vessels.

Related Links:

Malaysian supplier expects 90% of future business to come from bunkering

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