Company expects domestic and shipping industry to grow moderately
KUCHING: Harbour-Link Group Bhd, which has shipped more cargo, expects the domestic and shipping industries to grow further at a moderate rate.
The increase in cargo volume transported pushed up Harbour-Link’s shipping, marine services and others division revenue and pre-tax profit to RM74.5mil and RM3.04mil respectively in the first quarter to Sept 30, 2014 (1Q-2014) from RM61.1mil and RM2.7mil respectively in 1Q-2013.
In the quarter under review, Harbour-Link posted strong earnings growth, raising its group pre-tax profit to RM17.1mil from RM12.6mil, an increase of RM4.5mil or over 35% from 1Q-2013 although revenue only increased marginally to RM136.6mil from RM135.4mil, according to the Bintulu-based company’s latest quarterly results.
The shipping, marine service and others divisions was the key contributor to group revenue, followed by logistics services and equipment rental divison (RM49.4mil), engineering works division (RM11.8mil) and property development division (RM879,000).
But the logistics servicves and equipment rental division contributed about 75% or RM12.9mil (vs RM6.5mil in 1Q-2013) to group’s pre-tax profit with the completion of certain project logistics contracts.
Going forward, Harbour-Link said with expected continual growth of the shipping industry, the group, with its current fleet of vessels and expertise, would continue to explore business opportunities.
“The logistics services and equipment rental division is expected to remain positive. The group will continue to focus on providing value-added total logistics solutions to sustain its growth. The engineering division is expected to continue contributing positively to the group,” it added.