KUCHING: Hubline Bhd has posted sharply higher group revenue of RM229.2 million in financial year ended Sept 30, 2022 (FY2022) from about RM153 million in FY2021,with improved performance from both its shipping and aviation businesses.
However, despite the revenue growth, group net profit fell to RM12.9 million from RM16.7 million year-on-year.
Earnings per share declined to 0.3sen from 0.4sen previously.
Year-on-year, the shipping and related activities segment reported higher revenue of RM145.9 million against RM104.4 million in FY2021 while the aviation & related activities segment turned in revenue of RM83.2 million as compared to RM48.5 million in FY2021.
In Q42022, Hubline recorded lower group net profit of RM2.56 million (Q42021:RM3.34 million) despite increase in revenue to RM54.4 million (RM46.8 million).
“The shipping segment contributed RM42.84 million in revenue during the current quarter. This is an increase of RM9.66 million when compared to the same quarter last year due to significant increase in freight rates. This increase in revenue is despite the number of shipments completed in the current year quarter being lower when compared to the same quarter of the preceding year due to more downtime for maintenance works and docking in the current year quarter.
“The aviation segment contributed RM11.57 million in revenue during the current quarter, a drop of RM2.05 million from the same quarter last year. The reduction is mainly due to reduced revenue from our flying school due to graduation of students during the quarter as well as the extension of time required to complete the course for some aviation students,” Hubline said in explanatory notes to its financials.
In Q42022, Hubline said the operating profits for the shipping segment had improved by RM2.79 million to RM7.2 million (Q42021:RM4.42 million) predominantly due to improved shipping rates, thereby allowing the group to realise better margins.
But, the aviation segment has reported dismal results, incurring an operating loss of RM2.32 million as compared to operating profits of RM6.48 million in Q42021.
“The reduction is mainly due to reduced revenue coupled with increased maintenance works on our aircrafts which resulted in higher operating expenses,” it added.
Hubline’s subsidiary Layang Layang Aerospace Sdn Bhd owns and operates a fleet of helicopter and fixed wing aircraft that serve clients in Sarawak, Sabah and Peninsular Malaysia.
Hubline’s Q42022 financial results were weaker as compared to the immediate preceding quarters (Q32022) when the group recorded revenue of RM59.7 million and after-tax profit of RM2.62 million.
Overall revenue in Q42022 has fallen by RM5.26 million despite a marginal increase in the revenue of the shipping segment by RM0.62 million.
The drop in revenue was caused by fall in the turnover of the aviation segment by RM5.88 million.
Commenting on prospects, Hubline said the group’s shipping segment business performance is expected to remain encouraging for the next financial year despite downward pressures in shipping freight rates.
“Shipment orders continue to be promising and the group expects its performance to remain satisfactory as we strive to continuously maximise our fleet utilisation in the current favourable climate,” it added.
For the aviation segment, Hubline said the general aviation business will continue to perform well as it has been successful in procuring and implementing aviation contracts.
However, it said the flying academy continues to face challenges as student intake stays slow.
The company remains cautiously optimistic that this situation will improve in the medium term in line with the recovery of the aviation industry.
