CEFC narrows losses for Q2, says discussions on acquisitions still ongoing

FUEL oil trader CEFC International reported a loss of US$328,000 for its second quarter ended March 31, 2016, slightly less than US$457,000 a year ago and narrowing from US$758,000 for its first quarter.

Revenue jumped to US$292.3 million for Q2, more than 10 times from US$26.2 million a year ago.

Losses stemmed from higher expenses not covered by profits generating from trading.

On discussions to acquire equity interests in two companies announced last year, CEFC said that it is still in the midst of doing due diligence for its port facilities project acquisition and still at the stage of negotiating key commercial terms for the floating storage project acquisition.

It added that ING Bank NV Singapore Branch has in May agreed to grant an uncommitted credit facility of up to US$150 million.

Its aggregate trade facilities now stand at US$511 million.

CEFC said that its performance still depends on global markets, and the UK's recent decision to leave the European Union could add even more uncertainty in the short to mid term.

Net asset value at end-June stood at 4.641 US cents.

The counter closed Monday trading at S$0.20, up S$0.019 or 10.5 per cent, before results were released.