New Silkroutes Group Limited (NSG), an investment holding company with core capabilities in energy trading and healthcare management, said today its wholly-owned International Energy Group Pte Ltd (IEG) has achieved its biggest quarterly revenue and net profit since the oil and gas subsidiary started operations in June 2015.
IEG’s revenue for its fiscal second quarter ended 31 December 2016 rose to US$123.7 million from US$5.8 million for the same period a year earlier
and from US$69.2 million for the three months ended 30 September 2016.
Singapore-headquartered IEG, which trades mainly gas oil and fuel oil, managed to engage with more counterparties, boost trading volumes and structure more profitable trades in 2QFY2017.
Buyers of its products are from across the world and its counterparties include oil majors and national oil companies.
The NSG unit, which intends to own and manage oil storage facilities as part of its longer-term growth strategy, made a net profit of US$665,000 in 2QFY2017.
This reversed a loss of US$113,000 in 2QFY2016 and surpassed a profit of US$562,000 in 1QFY2017.
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For the six months to 31 December 2016, IEG generated US$192.9 million in revenue and US$1.2 million in net profit, substantially more than its revenue of US$49.6 million and net profit of US$50,000 for the entire financial year ended 30 June 2016.
For the current financial year ending 30 June 2017, IEG had previously said it expects to achieve revenue of more than US$310 million.
The last time NSG, previously known as Digiland International Limited, generated annual revenue of more than US$300 million was in FY2004, as a distributor of consumer IT products, a business it is no longer involved in.
IEG’s performance lifted NSG’s revenue for 2QFY2017 to US$123.8 million from US$69.3 million for 1QFY2017 and from US$6.3 million for 2QFY2016.
For 1HFY2017, NSG’s revenue grew to US$193.1 million from US$9.1 million for the same period a year earlier.
As part of efforts to diversify its income stream, NSG said earlier this month it would acquire an 80% stake in CG Capital Markets Holdings LLC, a New York-based broker- dealer and investment bank.
In December last year, NSG completed the acquisition of a 51% stake in Singapore-
based Healthsciences International Pte Ltd (“HSI”), which has the expertise to operate
hospitals and clinics. HSI also runs employee healthcare benefits programmes in Southeast Asia. – BusinessNewsAsia.com