Announcing revenue of RM663.2 million for FY 2019, Malaysia’s Straits Inter Logistics attributed much of the rise to an increase in demand for high sulphur fuel oil and the start of VLSFO supply.
In 2019, the oil trading and bunkering company began the supply of marine fuel oil in addition to marine gasoil and it added two bunker barges, the 5,227 DWT MT Begonia and the 5,643 DWT MT Ixora, to support extra demand.
In its newly released annual report for 2019, Straits Inter Logistics noted that its acquisition of a 55% equity interest in Tumpuan Megah Development Sdn Bhd in September 2018 and a 38% equity interest in Banle Energy International Limited in February 2019 had widened the scope of its bunkering and trading markets.
The company’s agreement with Labuan Port Authority in March 2020 to undertake port management services at Labuan Liberty Port has also enabled it to diversify into the port operation business in addition to its primary business of marine fuel supply.
In spite of the economic impact of the coronavirus pandemic, Straits Inter Logistics said the outlook for its bunkering business is ‘stable’.
‘The Group is in the defensive industry of bunkering and logistics and the size of the bunkering industry in this country is still large enough to be tapped by Straits,’ it said.
The company currently operates from 14 ports in both Peninsula and East Malaysia.
Straits Inter Logistics noted that by adding fuel oil to its supply offering it is now able to cater the containership segment and has reduced its dependence on bunkering vessels in the O&G sector.