KUCHING: Harbour-Link Group Bhd has delivered significantly higher group net profit of RM24.56 million in first quarter to September 30, 2024 (1QFY2025) from RM16.13 million a year ago, bolstered by higher shipping freight rates and cargo volumes transported.
Group revenue surged to RM248.3 million from RM206.1 million recorded in 1QFY2024.
This lifted company’s earnings per share to 6.16 sen from 4.05 sen.
In the current quarter under review, Bintulu-based Harbour-Link derived the bulk or RM164.63 million of its group revenue from shipping & marine segment (1QFY2024: RM128.2 million), integrated logistics segment RM52.52 million (RM53 million), machineries trading segment RM20.32 million (RM12.58 million) engineering segment RM10.71 million (RM7.33 million) and property development segment RM104,000 (RM5 million).
The shipping & marine segment more than doubled its pre-tax profit from normal operations to RM26.37 million (RM12.38 million) but the integrated logistics segment pre-tax profit fell to RM6.99 million (RM9.7 million) and machineries trading segment posted improved pre-tax profit of RM2.69 million (RM1.72 million). The engineering segment widened its pre-tax loss to RM636,000 (-RM47,000) while the property segment fell into the red with pre-tax loss of RM106,000 (+RM3.44 million).
“The shipping & marine segment recorded revenue of RM164.63 million, which is RM36.43 million or 28% higher than the preceding financial period ended 30 September 2023 of RM128.2 million.
“The reason for the significant increase in profit before tax is due to additional tonnage carried and higher freight rates,” Harbour-Link said in explanatory notes accompanying its financial results. The group’s shipping services cover intra-Asia and domestic routes in Malaysia.
Harbour-Link said the integrated logistics segment revenue declined marginally or RM0.48 million to RM52.52 million (RM53 million) but its pre-tax profit fell by RM2.71 million because of allowance for impairment of RM0.63 million as well as lower volume handled due to some delays in the project delivery job.
The machineries trading segment posted much improvement as its revenue surged by 61 per cent to RM20.32 million (RM12.58 million), boosted by increase in the sales volume of machineries.
The engineering segment saw its pre-tax loss worsened to RM0.64 million (RM0.05 million) despite a 46 per cent jump in revenue to RM10.71 million (RM7.33 million) due to project delays and overheads. The higher revenue was achieved as the implementation of an on-going project has achieved a certain milestone.
The property development segment recorded pre-tax loss of RM106,000 (+RM3.44 million) as revenue plunged to RM104,000 (RM5 million) as there was no sales of properties in the current quarter.
As compared to the performance of the immediate preceding quarter (4QFY2024), Harbour-Link registered a three per cent increase in revenue to RM248.3 million in 1QFY2025 (RM241.12 million) but lower pre-tax profit of RM34.42 million (RM39.74 million) mainly due to the weaker performance of the integrated logistics segment.
In the current quarter, the shipping & marine segment reported higher pre-tax profit of RM26.32 million (4Q2024: RM22.82 million) as revenue shot up to RM164.63 million (RM121.8 million) as a result of improved freight rates and higher cargo volume transported.
The integrated logistic segment saw its pre-tax profit dropped to RM5.16 million (RM15.13 million) in tandem with fall in revenue to RM52.52 million (RM65.66 million).
The machineries trading segment returned to the black with pre-tax profit of RM2.69 million (-RM6.39 million) despite a substantial drop in revenue to RM20.32 million (RM38.14 million) as in the immediate preceding quarter, provision of cost and impairment of trade receivables were made.
The engineering segment cut its pre-tax loss to RM636,000 (-RM1.73 million) even though revenue fell to RM10.71 million (RM14.47 million).
The property development segment slipped into the red with pre-tax loss of RM106,000 (+RM3.11 million) as revenue plunged to RM104,000 (RM4.51 million) due to no property sales in the current quarter.
