New Silkroutes Group Limited (NSG) has raised its revenue forecast for oil trading by 29 per cent to $400 million for FY2017, following another quarter of strong performance by its wholly-owned International Energy Group Pte Ltd (IEG).
Singapore-headquartered IEG, which trades primarily crude components and distillates, generated revenue of $125.1 million in Q3FY2017, its best quarterly performance since it commenced operations in June 2015. IEG, whose counter parties include oil super majors and national oil companies, had revenue of $9.5 million in the same period last year and $123.7 million in Q2FY2017.
The improved performance, driven by increased transactions and trading volumes, lifted IEG's revenue for the first nine months of FY2017 to $318.0 million. This surpasses its previous revenue forecast of $310 million set in November last year for the whole of FY2017. It is also well above IEG's revenue of $49.6 million for all of FY2016.
Artun Gursel, book leader and trading manager, IEG said, “IEG has delivered exponential growth in the two short years that it has been in business, despite the global slump in oil prices. We have been able to do so by staying nimble, working with reliable counter parties, and taking calculated risks without biting off more than we can chew.”
To drive growth further, IEG will seek to expand its portfolio of trading products, which will include crude oil, and invest in assets such as storage facilities or distribution networks, he added. IEG's performance lifted NSG's revenue for 3QFY2017 to $125.4 million from $10.2 million a year earlier. For the first nine months of FY2017, NSG's revenue came in at $318.5 million, up from US$19.3 million for the same period in FY2016.