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CEFC inks procurement and supply deal with Shanghai oil & gas group
CEFC International has won an overseas procurement and supply contract from CEFC Shanghai International Group, the Singapore-listed oil and gas trading company announced on Tuesday after the market closed.
The contract is for one year but will automatically renew for subsequent one-year periods unless mutually terminated by parties.
CEFC Shanghai is a unit of CEFC China Energy Co, which CEFC International's controlling shareholder Ye Jianming sold out in 2011 as he moved to acquire CEFC International, which was then known as Sun East Group.
Mr Ye no longer owns any direct stake in CEFC China, although he retains a 5 per cent interest in a fund that in turn holds a fifth-share in the holding company of CEFC China.
As part of the contract, CEFC International will serve all of CEFC Shanghai's overseas procurement and supply activities for the trading of crude oil, refined petroleum products, petrochemical products, liquefied petroleum gas, natural gas and other related commodities.
"In addition to bringing substantial trade flow and lifting the potential for turnover and profit growth, it is also expected to improve our presence in global energy trading, expand our customer and supplier base, and diversify the range of our traded products," CEFC International chairman Zang Jian Jun said in a statement. "This will substantially benefit our long-term growth."
CEFC shares closed at 32 Singapore cents on Tuesday, up by 14.3 per cent or four Singapore cents.