Malaysia-listed bunkering firm Straits Inter Logistics (Straits) posted a 60.7% on year increase in net profit for the quarter ended 30 September (Q3) of 2018.
It recorded net profit of RM 1.04 million (USD $250,000) in Q3 2018, up from RM 0.55 million in Q3 2018, showed latest financial documents.
Revenue was MYR 69.4 million in Q3 2018, a 110% increase from revenue of MYR 33.0 million in the similar quarter last year.
“With the completion of the acquisition of 55.0% equity interest in Tumpuan Megah Development Sdn Bhd. (Tumpuan Megah) on 28 September 2018, the group is poised to grow further with the enlarged fleet size of nine vessels as compared to two vessels prior to the acquisition,” it said.
“The total litreage capacity of the enlarged fleet has leaped substantially from 1.00 million litres to 12.00 million litres.
“In addition, with the wider infrastructure in terms of suppliers and customers coverage, Straits will be able to expand its geographical coverage to capture the growing opportunity in the oil bunkering industry in both the Malaysian and ASIAN region.”
The acquisition of Tumpuan Megah comes with an aggregate profit after tax guarantee of RM 10 million for the financial year ended 31 December 2019 and FYE 31 December 2020.
On 9 November 2018, Straits entered into a conditional share sale agreement with CBL (Asia) Limited for the acquisition 38.0% equity interest in Hong Kong-based bunker trading firm Banle Energy International Limited (Banle).
The proposed acquisition of Banle comes with an aggregate profit after tax guarantee of USD $1.65 million for the FYE 31 December 2019 and FYE 31 December 2020.
This corporate exercise to discuss the acquisition is scheduled to be completed by the first quarter of 2019.
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Photo credit: Straits Inter Logistics
Published: 29 November, 2018
