RIB banks on bunkering logistics business
PETALING JAYA: Raya International Bhd (RIB) aims to maintain its strong momentum in the oil bunkering and oil-related trading businesses for the financial year ending December 31 2017 (FY17) after exiting its water and air filtration division.
Independent non-executive director Ho Fook Meng said the company ’s diversification into the bunkering logistics business would provide consistent sizeable recurring income.
“We hope to maintain the momentum at healthy pace as we provide fuel to vessels sailing within the vicinity of Pasir Gudang Port in Johor,” he said after an annual general meeting, here, yesterday.
Ho said RIB’s bunkering logistic business would require a 500 tonne vessel — a mobile fuel kiosk in the ocean — to provide fuel to local and foreign ships.
“We are not into the oil and gas sector. Instead, we provide a logistics business in terms of oil tank vessel that supplies fuel to ships in the ocean. Hence, ship operators can save their time to fuel up, instead of going to the port,” he said.
Ho said it was also looking at other options to diversify its business in the future.
“Currently, we are focused on oil trading and bunkering business. We get our fuel from major oil companies based in Malaysia like Petronas and Shell. We sell it to Malaysian and foreign vessels in the offshore market,” he said.
RIB is considering renaming itself to Straits Inter Logistics Bhd as well as raising funds via a rights issue amounting to RM21 million, which was expected to be completed in the third quarter of this year.
“We have gone through four main corporate exercises, including capital reduction, ship acquisition, and completion of the rights issue with warrants and rebranding the company,” said Ho.
The bulk of its indicative proceeds of RM21 million will be utilised for its working capital if fully subscribed.
The balance from the proceeds will be allocated as working capital for its oil bunkering logistics and trading businesses.
“We completed our first ship acquisitions recently for about RM3.2 million.
“Both ships have a 500-tonne capacity for oil bunkering activities,” he said.
Meanwhile, RIB said it had no connection to funds from getrich-quick and fake online investment schemes run by a company previously linked to it.
Ho said the company’s oil bunkering and oil-related products trading company did not engage in “money game” activities.
For the first quarter ended March 31 this year, RIB’s revenue rose to RM23.09 million from RM9.85 million in the same period a year ago due to contribution from its main activities in the oil bunkering and trading of oil products. Ayisy Yusof