Local reports quoted group financial controller Richard Ling as saying that SSCorp had benefitted from the drastic drop in bunker fuel price as marine fuel oil consumed by the group’s larger cargo vessels and chemical tankers had plunged to $450 per tonne from $600 per tonne earlier this year.
He added that industrial diesel used by the group’s smaller cargo vessels plying mostly domestic routes had also come down following the drop in global crude oil prices.
“Bunker fuel made up between 30% and 35% of our operational costs, and the group’s annual fuel consumption bill is around MYR130m. The lower bunker fuel will significantly reduce our operational expenses.
“Based on the current bunker fuel cost, it will increase the group’s profit margin by 7% to 8% assuming that the demand for cargo and freight charges remain unchanged,” he said.
Looking to the year ahead, Ling said the group’s container shipping business was expected to remain stagnant due to the world’s challenging economic environment but expects the crude palm oil transportation business to stay positive.
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