Asia/Pacific News
New Malaysia-Based Player Signs $10.7 Million Bunkering Deal
Straits Inter Logistics Bhd (Straits) [KLSE:STRAITS] today, through its 51 percent owned subsidiary Selatan Bunker (M) Sdn Bhd (Selatan Bunker), signed a six-month contract worth RM45 million ($10.7 million) to supply bunkering and associated services to Tumpuan Megah Development Sdn Bhd. (Tumpuan Megah), Malaysian media reports.
"We are pleased to be awarded this very first oil bunkering service contract, after we announced our business venture into this sector at the end of last year," Straits managing director Datuk Seri Ho Kam Choy said in a statement today.
In an exchange filing today, the company said it would finance the contract with proceeds from the Rights Issue completed on August 16, 2017 and "also from our internal sources of funds."
As Ship & Bunker reported last month, the company, formally known as Raya International Bhd (Raya), rebranded as Straits Inter Logistics Bhd as part of the company's new move into bunkering, aiming to position itself as a "premium" bunker supplier.
Straits expects bunkering will become its core business and to replace the oil trading business that is currently contributing some 90 percent of group revenue.
As Ship & Bunker has reported, Straits says it expects to commence bunkering services by early fourth-quarter 2017.
