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Century Logistics Holdings
Bhd expects its oil logistics services to still
contribute about 37% of revenue despite two of
its six floating storage units being due for
dry-docking for two months this year.
“This is due to the current high oil price that
will have a positive impact on our business, as
shipment of oil is projected to increase,”
deputy managing director Dr Mohamed Amin Kassim
told StarBiz.
“This year, we expect to handle 28 million
tonnes of fuel oil, up 16.7% against last year's
total throughput.”
In the financial year ended Dec 31, 2007,
Century Logistics recorded a net profit of
RM20.7mil from a revenue of RM161mil.
The company currently provides the ship-to-ship
oil transfer via very large crude carriers (VLCCs)
off Pasir Gudang and Port of Tanjung Pelepas.
Century Logistics, which has a licence to
provide oil logistics services on floating
storage units (FSUs), has teamed up with the
VLCC owners to provide the service to oil
traders.
Three of the six VLCCs are operated by Titan Oil
Pte Ltd, a Singapore-incorporated holding
company with a stake in the Hong Kong-listed
Titan Petrochemicals group.
Century Logistics has forged a smart partnership
agreement whereby Titan operates as an oil
trader as well as owner of the three VLCCs.
The remaining three FSUs are operated by other
oil traders.
On whether Malaysia's decreasing exports of
electrical and electronics (E&E) goods to the US
would impact its business, Mohamed Amin said
Century Logistics was not affected as it had
focused on niche markets such as Syria and the
Middle East.
“We are also finalising other supply chain
contracts with a renowned company in Africa,” he
said.
Century Logistics provides seamless supply chain
management solutions, as many multinational
manufacturers have started to realise the
importance of outsourcing their non-core
activities.
This also involves the procurement and assembly
of different kinds of products such as
refrigerators, vacuum cleaners, plasma
televisions, air-conditioners, washing machines
and other electrical appliances.
Currently, it has a production capacity of
25,000 units per month.
On the proposal to sell its property in Port
Klang to MapletreeLog (M) Holdings Sdn Bhd for
RM32mil cash, Mohamed Amin said an exceptional
gain of RM5.7mil would be reflected in Century
Logistics' results for the first quarter ended
March 31.
“This is after paying about RM16mil to service
loans,” he said, adding that the company had
paid term loans of RM17.5mil this month.
He said this had resulted in a reduced gearing
of 0.1 time against 0.65 time last year.
Mohamed Amin said by selling the property to a
real estate investment trust, the company would
also be able to realise profit and return on
investment faster.
“We are still the logistics operator of the
disposed property that includes warehouses but
our customers now have to pay the rental fees to
MapletreeLog.
“The disposal will not affect our warehousing
operations as we continue to serve our long-term
warehousing clients (even those using the
disposed property) with our logistics services,”
he said. |
