KUCHING: Hubline Bhd group has raised its total borrowings to RM105.73 million as of June 30, 2025, an increase of RM16.89 million from RM88.84 million recorded a year earlier.
Over the one-year period, the short-term overdraft climbed to about RM23.55 million from RM8.5 million, while invoice financing increased to RM36.6 million from RM32.45 million.
However, the term loan (foreign denomination) declined to RM1.41 million from RM1.86 million, and the revolving credit dropped to RM15 million from RM17.2 million.
Total borrowings in foreign denomination were reduced to RM7.49 million from RM9.97 million in June 2024. The group’s total borrowings comprised of short term (RM80.98 million) and long term (RM24.75 million).
“The average interest rate of borrowings for the group is 7.01 per cent per annum,” Hubline said when releasing its third quarter to June 30, 2025 (3Q2025) financial results.
The group’s foreign currency debt is denominated in US dollar and is not hedged to ringgit.
“Our view is that while we are exposed to some foreign currency volatility in the short term, the impact is not significant in the long term, especially where our group does earn revenue in the same currency.
“Furthermore, hedging is costly and can introduce unwanted leverage to the group,” added the logistics company.
In 3Q2025, Hubline group net loss widened to RM1.27 million (3Q2024:-RM336,000) as revenue fell to RM43.83 million (RM51.2 million).
The company incurred loss per share of 0.03sen (-0.01sen).
In the current quarter under review, the shipping segment generated RM24.84 million (3Q2024:RM34 million) to group turnover while the aviation segment contributed RM18.99 million (RM17.2 million).
Hubline attributed the decrease in sales of the shipping segment to fewer vessel sets in circulation, coupled with drop in freight rates and the unfavourable foreign exchange conversion of freight income from US dollar to ringgit.
The aviation segment had recorded higher revenue as a result of increased activities across all its business operation — flying doctor services, calibration and aviation maintenance contract.
However, course fee income from the flying academy was lower due to the completion of cadets training contracts. Compared to the immediate preceding quarter (2Q2025), Hubline managed to reduce its after-tax loss to RM1.32 million in 3Q2025 from RM2.67 million in tandem with increase in revenue to RM43.83 million from RM40.74 million.
On a nine-month period in 2025 (9M2025), Hubline reported worsening group net loss of RM5.22 million (9M2024:-RM460,000) as revenue plunged to RM128.6 million (RM155.96 million).
The shipping segment revenue fell to RM79.39 million (RM103.9 million) and the aviation segment also reported lower revenue of RM49.2 million (RM52 million).
The shipping segment recorded pre-tax profit of RM3.77 million (RM12.4 million) whereas the aviation segment narrowed its pre-tax loss to RM1.55 million (-RM4.79 million).
Commenting on prospects, Hubline said: “Our shipping segment is focused on restoring positive momentum in the current year.
The logistics sector is facing a challenging market due to global economic uncertainties, which has led to some market apprehension.
“However, we are actively working to maintain high vessel utilisation and operational efficiencies.
This target approach allows us to focus on what we can control through maximising our performance with our current fleet.
It positions us to capture market share as conditions improved.”
On the outlook for the aviation segment, Hubline said it is maintaining its positive momentum and continues to secure new aviation charter and maintenance contracts.
But the flying academy is still facing challenges in securing new student intake.
“The management continues to improve its operational efficiency and expanding its revenue base to improve profitability,” said Hubline.
