KUCHING: The “wait and see” attitude of commodity traders to deal with continuing global economic uncertainties is creating challenges for the logistic industry, like shipping sector, says Hubline Bhd.
Hubline, which is involved in bulk cargo transportation, said in the January-March 2025 quarter (2Q2025), the group shipping segment revenue had dropped to RM25.85 million (2Q2024: RM32.32 million) due to fewer voyages performed.
The company said the revenue reduction was mainly because the group had deployed fewer vessel sets after the sales of several of them last year for which the replacement vessels have not yet been delivered.
This was coupled by certain vessel sets were undergoing extended maintenance works.
“The shipping segment’s focus is to regain positive momentum within the current year.
However, continuing global economic uncertainties has caused market apprehension, consequently placing the logistics section in a challenging position.
This has led to a “wait and see” approach among commodity traders.
“Our primary objective remains to endeavour to maintain high vessel utilisation and operational efficiencies,” said Hubline on prospects going forward.
In 2Q2025, Hubline group posted sharply lower revenue of RM40.74 million (2Q2024: RM51.67 million) but managed to reduce its after-tax loss marginally to RM2.67 million (-RM2.7 million).
Besides shipping, the group’s other core business is in aviation.
In 2Q2025, the aviation segment recorded lower revenue of RM14.89 million (RM15.35 million) but its operating profit increased to RM1.6 million (RM1.1 million).
The general aviation division posted higher sales as a result of new aviation maintenance contract being secured and performed in the current quarter.
In the immediate preceding quarter (1Q2025), Hubline group did better with higher revenue of RM44 million (2Q2025: RM40.7 million) and lower after-tax loss of RM2.51 million (-RM2.67 million).
In the current quarter, the group reported a decrease in both freight rates and cargo volume transported.
On a six-month period in FY2025, Hubline posted fairly weak financial results as its group net loss increased to RM3.94 million (6m2024: -RM124,000) due to a substantial drop in revenue to RM84.78 million (RM104.76 million).
The shipping and aviation segment contributed RM54.56 million and RM30.22 million to group turnover against RM69.9 million and RM34.86 million respectively in 6m2024.
While the shipping segment is working to maintain high vessel utilisation going forward, Hubline is more upbeat on the performance of its aviation business as the segment is expected to keep up its position momentum with new aviation and maintenance contracts.
However, the group’s flying academy is still facing challenges to increase its students’ intake.
“The management continues to implement rationalisation plans to improve its operational efficiency whilst seeking new opportunities to expand its revenue base and profitability,” said Hubline.
