Straits said in a stock market announcement that the deal, through its 51%-owned unit Selatan Bunker, is for a six-month contract to provide bunkering services worth MYR45m ($10.7m) to Tumpuan Megah Development.
“We intend to finance the contract with proceeds from the Rights Issue completed on August 16, 2017 and also from our internal sources of funds,” it said.
Straits md Ho Kam Choy said the company is pleased to be awarded the very first oil bunkering service contract, after announcing its business venture into this sector end of last year.
“This contract is expected to contribute positively to the company’s earnings for the financial period ending 31 December 2017.
“We expect this business to eventually become the core business of Straits and to replace the oil trading business that is currently contributing some 90% to our group revenue,” he added.
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