KUALA LUMPUR: Techfast Holdings Bhd has won a RM1.14 billion contract to supply oil to East Timor-based Zillion Oil Timor LDA.
Techfast, in a filing to Bursa Malaysia today, said its subsidiary Fast Energy Sdn Bhd which is involved in oil trading and oil bunkering businesses, had secured the Letter of Intent (LOI) with Zillion Oil on November 5.
Zillion Oil is a company incorporated in East Timor (formerly Timor Leste) and is principally engaged in the provision of oil trading business.
Fast Energy will supply up to 6.44 million barrels of oil or 178,800 barrels a month for three years effective from January 1 next year.
TechFast said the price would be calculated on a per barrel basis in accordance with the average price published by Platts Asia-Pacific or Arab Gulf Marketscan for the relevant month plus premium.
The company said the contract was in line with the objectives to diversify its business and expand international presence.
The ACE Market-listed company recently announced a boardroom change with the entry of Alvin Ang, founder of packaging firm Thong Guan Industries Bhd.
The New Straits Times reported recently that Ang was coming in to inject new portfolios into Techfast and that there was a possibility to make it a champion in electrical and electronics manufacturing.
Ang said he had a set of plans for Techfast, but declined to elaborate on the matter.
Shares of Techfast spiked since October 15, rising from 35 sen to close at 61.5 sen today. Some 21.4 million shares exchanged hands.
Techfast, which posted a pre-tax profit of RM2.34 million for the six months to June 30, 2020, has three business segments.
They are self-clinching fasteners, rubber sheets and epoxy, and product application which are already benefiting from the US-China trade war.
Its revenue for the six months was RM14.08 million, 4.1 per cent higher than the RM13.52 million recorded during the same period last year.
Techfast said the LoI would pave the way for further exclusive discussions between the parties prior to signing of a definitive supply agreement.
Barring any unforeseen circumstances, the parties expect to finalise negotiations and execute the definitive agreement by the first quarter of next year.