Collector time | Straits Energy Resources Reports 21% Profit Increase; supported by 215% revenue growth

Straits Energy Resources (SER), listed in Malaysia, Previously known as Straits Inter Logistics, reported 21% profit growth for the quarter ended June 30, 2021 (Q2 2021) due to ramping up of business in its oil and service trading segment bunkering.

The company reported net profit of RM 1.14 million (US $ 270,000) in the second quarter of 2021, an increase from net profit of RM 942,000 in the second quarter of 2020.

Its revenue in the second quarter of 2021 was RM161.9 million, up approximately 215% from the turnover of RM75.2 million recorded in the corresponding quarter of the previous year.

“The [overall revenue] The increase was largely attributed to the oil trading and bunkering services segment due to the recovery in the shipping industry and the global oil price compared to the corresponding quarter when the country was in a movement control order. (MCO) stricter throughout the quarter, ”he explained.

“The revenue of this segment increased by RM 161.0 million.”

SER July 30 has received a Letter of Approval (LOA) from the Marine Department Malaysia for the development of a Ship-to-Ship Energy Transshipment Center (STS) to provide and perform liquid cargo transfer activities.

“The new activity should start by the fourth quarter of 2021 and the Group aims to be a major player in the sustainable and alternative energy industry in addition to its current fuel bunkering and port operations activities,” says it up to date.

On July 5, 2021, the Group announced the creation of its subsidiary Tumpuan Megah Development Sdn Bhd (TMD) collaborate with Petronas Dagangan Berhad to supply marine fuel to ships in all Malaysian ports.

“This collaboration will bring added value to both parties to extend its commercial coverage,” he says.

Looking ahead, SER believes that the COVID-19 pandemic continues to pose challenges to the global business environment since its onset in March 2020.

“The economic outlook remains very uncertain with the continued mutation of the COVID-19 virus and increased movement control should be re-imposed to break the chain of infection,” he predicts.

“As the majority of the Group’s activities are classified as essential services, the Group will be able to continue operating and simultaneously comply with Standard Operating Procedures (SOPs) to ensure the safety and well-being of its employees and also to ensure continued growth and good execution of its expansion programs.

“Nonetheless, the Board of Directors and management of the Company from time to time closely monitor the impact of this pandemic on the Group’s results and ensure that appropriate risk mitigation measures are taken to preserve the value and protect the interests of shareholders. “

Related: Straits Inter Logistics changes name to Straits Energy Resources
Related: Tumpuan Megah Development to collaborate with Petronas for bunker deliveries
Related: Straits Inter Logistics receives government approval to develop STS hub
Related: Straits Inter Logistics subsidiary to become STS operator in Victoria Bay, Labuan
Related: Malaysia: Straits Inter Logistics Prepares For USD 3.6 Million STS Hub Project
Related: Malaysia: Straits Inter Logistics posts profit up 26% year on year in first quarter 2021

Photo credit: Energy resources of the straits
Posted: Aug 31, 2021

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