KUCHING: Shin Yang Shipping Corporation Bhd (Syscorp) group net profit has surged to RM44.82 million in third quarter ended March 31, 2023 (Q32023) from RM29.95 million in Q32022, driven by increase in container cargo volume transported and higher shipping margin.
The higher earnings were generated on the back of expanded group revenue which grew to RM234.8 million from RM210.2 million during the same period of comparison.
This boosted earnings per share to 3.93 sen from 2.59 sen. Syscorp attributed the RM24.6 million or 11.7 per cent rise in group turnover in the current quarter under review as compared to Q32022 to higher revenue generated from the shipping segments.
The increase in pre-tax profit to RM46 million from RM30.7 million or by 50.1 per cent during the same period was a result of the increase of margin and shipment volume of container cargo, the Miri-based company said in its financial results. In Q32023, the shipping segment’s revenue rose 20.5 per cent to RM200 million (Q32022: RM166 million) while its pre-tax profit climbed 59.6 per cent to RM40.4 million (RM25.3 million).
“The increase in revenue was mainly due to the improvement in utilisation rates in shipping segment.
The increase in profit before tax in shipping segment were mainly due to the increase in margin and shipment volume in shipping segments on container sectors,” said Syscorp.
On the other hand, the shipbuilding & ship repair segment recorded weaker performance, with its revenue slipping by 40.3 per cent to RM17.94 million (RM30 million), pushing down pre-tax profit to RM359,000 (RM3.11 million). “The decrease in revenue was mainly due to lesser shipbuilding work for external parties in the current quarter.
The decrease in profit before tax in shipbuilding and ship repair segment was due to low margin on shipbuilding’s work in progress under construction and slow demand in ship repair segments,” explained the company.
The service providers’ segment significantly improved its earnings, with its pre-tax profit soaring 148.6 per cent to RM5.88 million (RM2.36 million) although revenue only grew marginally to RM14.85 million (RM13.94 million). The higher profit was due to increased profit margin recorded in the shipping agency sector.
On the group’s new gas business following the acquisition of Piasau Gas Sdn Bhd in July 2022, Syscorp said the new segment contributed about RM1.8 million to group revenue but incurred pre-tax loss of RM267,000.
The Q32023 financial results outshone that of immediate preceding quarter (Q22023) when Syscorp recorded lower pre-tax profit of RM39.1 million (Q32023: RM46 million) and flat revenue of RM234.4 million (RM234.8 million). Syscorp said the improved earnings was contributed by higher margin and cargo shipment volume as well as the shipping agency business. On a nine-month period in 2023 (9M2023), Syscorp delivered strong earnings, with group net profit more than doubled to RM133 million (9M2022: RM56.9 million) as revenue expanded to RM716.5 million (RM608.3 million).
