New Silkroutes raises revenue forecast for oil trading in FY17

NEW Silkroutes Group (NSG) has raised its revenue forecast for oil trading by 29 per cent to US$400 million for its current financial year ending June 30.

This followed a quarter of strong performance by its wholly owned subsidiary International Energy Group Pte Ltd (IEG), the group said on Wednesday.

The last time NSG had annual revenue of at least US$400 million was in FY2003, when it was distributing consumer IT products across Asia. The group, which is no longer in the distribution business, is now an investment holding company focused on energy trading.

In its fiscal third-quarter ended March 31 results released on Tuesday, revenue surged to US$125.4 million from US$10.2 million a year ago. This is mainly attributable to the increased oil sales by IEG.

But purchases, a cost item, also correspondingly surged to US$124.9 million from US$9.9 million a year ago. The group narrowed its overall net loss to US$294,000 from US$1.3 million.