10-11-2017

New Silkroutes Group Expects Revenue of Over US$500M in FY2018

New Silkroutes Group Limited (“NSG” or the “Group”) said today it expects to generate revenue of no less than US$500 million in the 12 months ending 30 June 2018 (“FY2018”), up from US$433 million in FY2017, as its oil trading business kicked off the current financial year with record quarterly sales.

New Silkroutes Group Limited (“NSG” or the “Group”) said today it expects to generate revenue of no less than US$500 million in the 12 months ending 30 June 2018 (“FY2018”), up from US$433 million in FY2017, as its oil trading business kicked off the current financial year with record quarterly sales.

International Energy Group Pte Ltd (“IEG”) turned in revenue of US$147.99 million in the first quarter ended 30 September 2017 (“1QFY2018”), more than double the US$69.20 million achieved in the same period last year (“1QFY2017”). This marked IEG’s best quarterly performance since it started operations in June 2015.

The wholly-owned subsidiary of NSG attributed the improvement to higher transaction volumes. Singapore-based IEG trades primarily crude components and distillates. Its counterparties include oil supermajors and national oil companies.

As part of efforts to improve its supply-chain management and operational efficiency, IEG has in recent months invested in more logistics assets, such as vessels and storage facilities, and expanded its team to five. Its latest hire is a China-focused analyst who specialised in analytics at S&P Global Platts.

“IEG has made significant headway in the two years that we have been in business. To drive growth further, we have beefed up our supply chain management and brought in additional expertise. These investments will enable us to do more business and improve profitability in the longer term. For FY2018, we believe we can achieve more than US$500 million in revenue,” said Mr Artun Gursel, IEG’s book leader and trading manager.

The last time NSG had annual revenue of more than US$500 million was FY2002, when it was distributing consumer IT products across Asia. The Group is now an investment holding company focusing on energy trading, healthcare management, real estate investment and fund management.

IEG’s contributions lifted NSG’s revenue for 1QFY2018 to US$149.26 million from US$69.28 million for 1QFY2017. The Group ended 1QFY2018 with a net loss of US$0.53 million due to lower profit margins at IEG and costs arising from the consolidation of six dental clinics and two dental supplies companies acquired in June this year.

Revenue and profit contributions from the acquired entities, and from another three dental clinics that were added to NSG’s healthcare business on 1 November 2017, will be more fully reflected in the Group’s FY2018 results.

Source: Press Release

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