From Techfast to Fast Energy: The tapping of renewable energy space

ACE Market-listed Fast Energy Holdings Bhd (formerly Techfast Holdings Bhd) is actively seeking to expand its footprint in the energy space by exploring opportunities within renewable energy.

The petroleum trading and oil bunkering player recently completed a name change following a re-branding exercise to better reflect the group’s refreshed corporate strategy.

“Around the world, we are seeing demand for cleaner and sustainable energy gaining more traction from all quarters which include the residential, commercial as well as industrial sectors,” Fast Energy’s executive director Vincent Tan Wye Chuan commented.

“We intend to capitalise on the rise in demand for alternative energy, especially from organisations wanting to enhance their environmental, social and governance (ESG) performance with the transition to renewable energy.”

As part of its plans, Fast Energy has incorporated a new wholly owned subsidiary Fast Solar Sdn Bhd to undertake prospects in the fast-growing renewable energy industry, particularly in solar power.

Its intended principal activities include the investment in solar projects as well as the design, construction, operation and trade of solar-related products.

Fast Energy’s venture into the solar market is one of the group’s initiatives towards becoming a diversified energy player, thus enabling it to expand its revenue streams and scope of services.

In March 2021, Fast Energy diversified into the petroleum trading and oil bunkering business. To date, it has secured several contracts to deliver a range of marine fuel oils to renowned customers valued at an estimated RM4.2 bil.

At the same time, the group is strengthening its financial position and streamlining its operations to better position itself to take on attractive and profitable projects.

Meanwhile, the group is in the midst of disposing a wholly-owned subsidiary Techfast Precision Sdn Bhd given the declining demand for its products such as self-clinching fasteners (ie screws and nuts) which are becoming obsolete due to technological advancements in the assembly process of computers and televisions.

The proposed disposal will raise proceeds amounting to RM6.1 mil cash as well as reduce the group’s operating costs.

He added, “We are also undertaking a proposed two-for-one rights issue with free warrants, with potential proceeds of up to RM109.1 mil. This capital injection will strengthen our balance sheet and provide us the financial flexibility to capture future growth.”

“As we move forward, we shall continue to lay down the building blocks to ensure we remain agile in responding to evolving market needs with the aim of pursuing more projects involving energy-related activities.”

Shareholders of Fast Energy have approved the proposed disposal of TPSB as well as the proposed two-for-one rights issue with free warrants at an extraordinary general meeting (EGM) held on Aug 3.

At the close of today’s mid-day trading, Fast Energy was down 0.5 sen or 2% to 24.5 sen with 223,700 shares traded, thus valuing the company at RM99 mil. – Aug 4, 2021

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