PSP eyes Melaka bunkering hub post-listing

KUALA LUMPUR (Dec 4): PSP Energy Bhd is expanding its presence along key maritime routes with a new bunkering hub at Tanjung Bruas Port in Melaka following its listing on the ACE Market of Bursa Malaysia on Thursday.

The fuel and lubricant trader and distributor’s stock opened unchanged at 16 sen. It last traded at 15.5 sen, down 3.13 per cent from its initial public offering price.

The company raised RM34.2 million from the Public Issue of 213.80 million new shares at 16 sen per share.

Of this, RM15 million is set aside for the purchase of a bunker vessel to expand its bunkering business, while RM12 million will be used to buy fuel products, mainly diesel and marine gas oil, to increase sales volume.

Another RM1 million is allocated for seven new road tankers to replace older units and expand the fleet. The balance will go to general working capital of RM1.3 million and RM4.9 million to cover listing expenses.

The company in a post-listing statement said it had recently rented industrial land with a jetty and 6 megalitres of fuel storage at Tanjung Bruas Port under a tenancy agreement signed on Feb 25.

It said the site will be refurbished and developed into a full port based bunkering hub, enabling PSP Energy to supply marine gas oil directly to vessels calling at the port and tap growing traffic along the Strait of Malacca.

Group managing director Ong Chee Seng said the Melaka expansion is central to the Company’s long-term plan to strengthen its regional footprint and support rising demand for marine fuel.

“Tanjung Bruas Port is strategically located along major shipping routes, and this development positions us well to capture new demand in one of the region’s most active maritime corridors,” he said.

The bunkering segment remains the core revenue driver with RM147.8 million recorded in the financial year ended June 30, 2025 (FY25) compared to RM106.1 million in FY22.

To meet increasing demand, the company said it plans to add a bunker vessel of at least 2 megalitres to complement its three vessel fleet with a combined capacity of 2.4 megalitres. It also plans to buy a completed and used vessel for faster mobilisation and immediate deployment.

Ong said this will enhance the company’s ability to support customers across high-traffic maritime routes.

“Our priority is to build a modern and scalable fleet that allows us to meet customers’ needs efficiently and reliably,” he said.

Its lubricants division is also gaining traction, with revenue nearly double from RM14.3 million in FY22 to RM28.8 million in FY25.

To support this growth, PSP Energy will establish a new branch office and warehouse in Pahang to tap a new customer base Pahang, Terengganu and Kelantan as well as to explore cross-selling opportunities for its fuel products.

The new facility will strengthen service coverage across the East Coast and improve delivery turnaround times. In the near term, PSP Energy will explore opportunities in selected regional markets where lubricant demand is rising.

“We see significant potential in the lubricants segment, and we intend to scale it progressively to support our future earnings,” added Ong.