Techfast proposes expansion into petroleum trading, oil bunkering

PETALING JAYA: ACE Market-listed Techfast Holdings Bhd is proposing to diversify its existing business to include the trading of petroleum products, oil bunkering and other related activities, following its proposed acquisition of a 35% stake in CCK Petroleum Sdn Bhd for RM26.25 million via a combination of cash and issuance of new shares.

“This proposed acquisition puts

Techfast on a stronger footing to capture a bigger share of the local bunkering market and enhance our financial resilience. Moving forward, we intend to expand CCK Petroleum’s current trading network to include international ports as well.

“We are also engaging fleet operators as well as companies in the shipping, transportation and logistics industry to secure medium to longterm contracts to ensure a sustainable income. Currently, we are in discussions with a major Malaysian bunker supply firm operating at Port Klang, which will further expand our portfolio,” said executive director Vincent Tan Wye Chuan.

He said the new diversification allows Techfast to ride on the evolving maritime transport industry.

Tan pointed out that there is now an energy shift in the industry from oil-based fuels to cleaner alternative energy sources due to the upcoming International Maritime Organisation 2030/2050 regulation, which aims to reduce the shipping industry’s emissions of greenhouse gases by at least 40% by 2030 and 70% by 2050.

As such, newbuilds are opting for dual-fueled engines that can be powered by liquefied natural gas.

“We also anticipate activities in the oil and gas (O&G) industry to pick up. As bunker services are a critical support function to the O&G industry, we can directly benefit from a rise in O&G activities in Malaysia,” he said.

Techfast will seek approval from its shareholders for the proposed acquisition and diversification at a forthcoming EGM to be convened on March 11.