Higher cargo volume pushes up Harbour-Link’s revenue and profit
KUCHING: Higher cargo volume has driven Harbour-Link Group Bhd’s group revenue, which jumped by RM31.4mil or 14.8% to RM243.1mil for the first six months of the current financial year ending June 30, 2014 against RM211.8mil in the same period a year ago.
In line with increased revenue, group’s pre-tax profit improved to RM22mil from RM18.6mil.
The group’s shipping, marine services and other divisions registered revenue of RM115.9mil in the July-December period, which was RM2.8mil or 2.5% higher than the same period in 2012, thanks to increase in cargo volume.
However, the division group’s pre-tax profit slumped to RM4.1mil from RM5.1mil due mainly to additional preliminary expenses incurred for the acquisition of a vessel, Harbur-Link said in notes to its latest financial results.
The logistics services and equipment rental division’s revenue shrank to RM80.5mil from RM82.2mil while pre-tax profit fell to RM12.2mil from RM14mil over the six-month period due to decrease in existing cargo handling project.
The engineering contract division saw an impressive result with its revenue soared to RM46.8mil from RM16.6mil. The division returned to the black with pre-tax profit of RM5.7mil from a loss of RM639,000.
“The higher revenue and profit were achieved due to hitting significant billing milestones,” said Harbour-Link.
Commenting on prospects of going forward, the company said while it expected the engineering division to continue contributing positively to the group in the next two quarters, the logistics services and equipment rental division was anticipated to remain challenging due to the competitive operating environment and rising operating costs.
The group, it said, would focus on providing value-added total logistics solutions.
Harbour-Link said the domestic and regional shipping industries were also expected to stay competitive.