Never a better time to dive into the marine fuel oil market

TECHFAST Holdings Bhd landed a contract to supply up to six million litres of marine fuel per month to Huang Fan Sdn Bhd over a period of 45 months, expected to commence by end-March 2021.

Based on the current average selling price of marine gas oil, the aggregate contract value is estimated to be worth approximately RM540 mil for the entire 45-month period.

“We are delighted to have been awarded this contract to deliver bunkering services to Huang Fan, which we will undertake form our operations in Johor,” said Techfast executive director Vincent Tan Wye Chuan.

He added that the project is expected to expand the group’s existing orderbook and revenue streams while also widening its customer base.

Currently, Huang Fan is involved in, amongst others, dredging, drilling, blasting, land and marine sand reclamation, marine construction and subsea structures, as well as trading of marine sand.

Additionally, the group was recently awarded a contract to supply 10,000 to 30,000 MT of marine fuel oils per month to Wise Marine Pte Ltd, expected to commence in 2Q 2021 over a period of three years and a total contract value of approximately RM2.2 bil.

“We are working to develop our competencies and establish ourselves as a leading bunker supplier in Malaysia and Singapore. Our recent contract wins are a testament to the trust our customers have in our ability to deliver, as well as our commitment to grow this segment,” Tan said.

Moving forward, Tan revealed that the group plans to continue expanding its bunkering business, with anticipation for the marine fuel oils to pick up, budging up prices.

That being said, Tan believes that exploring the marine fuel industry now will give a positive long-term growth for the group. – March 24, 2021

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