A new subsidiary, Fast Energy Sdn Bhd has been established to undertake the provision of bunkering services, vessel chartering and other related activities.
"As part of our strategic plans, we are bidding for contracts to boost our orderbook and exploring earnings-accretive opportunities via strategic partnerships or merger and acquisition," he said.
Currently, Techfast is in the midst of acquiring a 35 per cent stake in CCK Petroleum Sdn Bhd, a Malaysian-based fuel supplier, for RM26.25 million via a combination of cash and issuance of new shares.
CCK Petroleum is involved in the trading of bunker oil and provision of oil bunkering services, involving the trading of marine fuels to ships, as well as other ocean faring vessels.
Established in 2013, it has a wide clientele base in the maritime industry with oil bunkering activities focused at transiting major ports in Malaysia.
"This 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," he said.
He said Techfast is also engaging fleet operators as well as companies in the shipping, transportation and logistics industry to secure medium to long-term contracts to ensure a sustainable income.
"Currently, we are in discussions with a major Malaysian bunker supply company operating at Port Klang, which will further expand our portfolio.
"We view this as an opportune time to diversify into the oil bunkering business in line with the recovery in global trade activities and marine transportation.
"Currently, there is a supply squeeze due to new bunker tanker requirements, requiring bunker operators to invest in new vessels. As such, we are also considering investing in new bunker tankers to increase our competitive advantage," he added.
This new business diversification allows Techfast to ride on the evolving maritime transport industry.
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 (IMO) 2030/2050 regulation, which aims to reduce the shipping industry's emissions of greenhouse gases by at least 40 per cent by 2030 and 70 per cent by 2050.
Due to this, newbuilds are opting for dual-fueled engines that can be powered by liquefied natural gas (LNG).
This presents an opportunity for Techfast to venture into the LNG bunkering space after establishing a market for traditional oil-based fuels.
"At the same time, 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.
"We are excited to embark on this new journey that will enable us to expand our revenue base and scope of services. With our strategic plans in place, we are confident that Techfast is well-positioned to yield stronger results and deliver sustainable long-term value to our shareholders."
Techfast will seek the approval from its shareholders for the acquisition and diversification at a forthcoming extraordinary general meeting to be convened on March 11, 2021.
There are so many case study showing oil bunkering is most time not doing good, But once they come back, cover more than 5-10 year losses. Anyhow Fast is still doing good and making profit, is a ready staying good effort.
According to Simply Wall Street, Firstberry Sdn Bhd only own a mere 0.3% (18 million units) in Kanger International Bhd, so it can't even be called a majority shareholder. However, it has 5.78% stakes (75.9 million units) in Fast Energy Holdings Bhd. The reason Firstberry became the substantial shareholder at first was because of Yap Yoon Sing, the resigned managing director traded his share for the share in Firstberry.
Be reminded of the proposal to be implemented soon.
i. Proposed Share Consolidation;
ii. Listing and quotation of up to 150,162,634 Consolidated Shares (assuming all outstanding Warrants are exercised and all remaining ESOS options are granted and exercised prior to the Proposed Share Consolidation);
iii. listing and quotation of up to 14,532,416 Consolidated Warrants arising from the adjustments pursuant to the Proposed Share Consolidated (assuming all the outstanding Warrants are not exercised prior to the Proposed Share Consolidation);
iv. listing and quotation of up to 52,556,921 Placement Shares to be issued pursuant to the Proposed Private Placement; and
v. listing and quotation of 11,800,000 Consideration Shares to be issued pursuant to the Proposed Acquisition.
Numerous case studies demonstrate that oil bunkering is frequently quite challenging, but that once it recovers, it can make up losses of up to five to ten years. However, Fast is still doing well and is profitable; this is a ready endeavour to continue doing well.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....