Techfast secures RM2.22b fuel oil contract from Singapore firm

KUALA LUMPUR: Techfast Holdings Bhd’s unit has secured a RM2.22bil contract from Singapore’s Wise Marine Pte Ltd to supply sulphur oil over three years.

Techfast said in a filing to Bursa Malaysia on Monday its unit, Fast Energy Sdn had on March 12, entered into a supply agreement with Wise Marine to supply low sulphur fuel oil, low sulphur marine gasoil and high sulphur fuel oil to Wise Marine.

Techfast will supply between 10,000 tonnes and 30,000 tonnes each month of the products to Wise Marine on the average price per tonne as reported by S&P Global Platts in Singapore (Mean of Platts Singapore). This includes an agreed premium throughout the contract period.

“The supply agreement will add to the revenue streams of Techfast and is expected to contribute positively to the earnings of the Techfast Group, ” it said.

Techfast said the supply agreement is also in line with Techfast Group’s objectives to diversify its business into the large volume and potentially lucrative oil and gas sector.

It expects the oil and gas sector is expected to expand with surges of demand post pandemic. The current recovery trend of crude oil prices paints a bright prospect.

“The group will benefit from the current port congestion at Port Klang and other major ports in Malaysia and Singapore. It is also well positioned to gain from the demand expansion and recovery post the Covid-19 pandemic, ” it said.

Wise Marine’s core activities are ship-to-ship marine fuel supply and trading business and it is currently a leading marine fuel supplier in Port Klang, and manages its own fleet of five vessels.

It recently acquired a new suitable vessel for the purpose of the supply agreement.