The Malaysian company's losses were mostly not attributable to its bunker business. File Image / Pixabay
Malaysia's Straits Inter Logistics saw a 24.5% drop in profit in the first quarter, the company said Friday.
Profit attributable to shareholders sank to 1.5 million ringgit ($350,000) in the three months to March 31, down from 2.1 million ringgit in the same period a year earlier, the company said in an exchange filing.
But the drop in profit was largely attributable to losses in its inland transportation and logistics segment, the company said, and healthy bunker demand increased its revenue.
"The increase in revenue for the current quarter by RM58.9 million or 28.9% to RM262.4 million, from RM203.5 million achieved in the preceding quarter was attributable to higher bunkering jobs secured for the supply of LSFO to container vessels in conjunction with the implementation of low sulphur cap regulation," the company said.
"In addition, the commencement of bunkering services by the newly acquired vessel, M.T. SMF Ixora has further increased the delivery tonnage of cargo.
"However, profit before tax for the Group reflected a decrease of RM1.9 million in the current quarter compared to the preceding quarter due to the deterioration of the selling price of the fuel oil as a result of COVID 19 pandemic."