KUALA LUMPUR: Straits Inter Logistics Bhd (Straits), via its 51 per cent owned subsidiary Selatan Bunker (M) Sdn Bhd, secured a contract services worth RM45 million from Tumpuan Megah Development Sdn Bhd.
In an exchange filing today, the company noted the contract, which is for the provision of bunkering services, is for a period of six-months commencing Sept 14, 2017.
“We intend to finance the contract with proceeds from the Rights Issue completed on August 16, 2017 and also from our internal sources of funds,” it said.
The newly appointed Straits managing director Datuk Seri Ho Kam Choy said the company is pleased to be awarded the very first oil bunkering service contract, after announcing its business venture into this sector end of last year.
“This contract is expected to contribute positively to the company’s earnings for the financial period ending December 31, 2017.
“We expect this business to eventually become the core business of Straits and to replace the oil trading business that is currently contributing some 90 per cent to our group revenue,” he added.
He pointed out that the company is on track to position itself as a marine logistics company in the provision of premium oil bunkering services to marine and cargo bulk transporters, oil and gas vessels, Floating Production Storage and Offloading (FPSO) vessels, cruise ships and ferries.
Straits noted it also plans to commence its oil bunkering services by early fourth quarter of 2017 following the acquisition of its first two vessels.
“Besides providing bunkering services, we currently involved in the business of trading and supply of oil products such as marine gas oil, to be supplied to ships anchored off the ports water, for their own use.
“Oil bunkering services is a game changer for Straits and we are optimistic on the business given to the active activity taking place in the Malaysian ports,” he said.