-Enters into agreement with Dyneff SAS to supply 800kt - 900kt of diesel in 2016
-Endorses the Group's trading capabilities in European market and strong international competitiveness
-Provides stable trade flow and implies positive revenue and profit potentials for the financial year 2016
-Marks a major milestone for CEFC International's trading business and expansion strategy in Europe
SINGAPORE, Jan. 18, 2016 /PRNewswire/ -- Mainboard-listed CEFC International Limited ("CEFC International" or the "Company" and together with its subsidiaries, the "Group"), today announced that it has successfully won the tender to supply diesel to Dyneff SAS ("Dyneff"). Pursuant to the successful tender, the Company has signed a diesel supply agreement with Dyneff.
Under the agreement, CEFC International, through its wholly-owned subsidiary, Singapore CEFC Petrochemical & Energy Pte., Ltd, will sell diesel to Dyneff with a total amount of 800kt to 900kt for a one year period between 1 January 2016 and 31 December 2016.
Dyneff is one of the leading independent fuel distributors in France and it has business operations in both France and Spain. Dyneff offers a full choice of motor fuels, biofuels, heating fuels, supplementary products and services that fulfil all the market requirements. Dyneff has played an active role in the fuel distribution sector for more than 50 years and covers three distribution channels: filling stations, a network of commercial agencies, and two wholesale agencies. Meanwhile, Dyneff also has a large-scale logistics infrastructure in both France and Spain, with strategic capabilities at the main Mediterranean and Atlantic ports1.
CEFC Shanghai International Group Limited ("CEFC Shanghai"), with which Singapore CEFC Petrochemical & Energy Pte., Ltd entered into a framework cooperation agreement in September 2015, agreed to purchase 51% stake in Rompetrol France SAS, the parent company2 of Dyneff3. Leveraging on the status as CEFC Shanghai's exclusive overseas procurement and supply platform, CEFC International participated in the bidding process of Dyneff and won the tender at the best price.
Commenting on the Agreement, Mr. Zang Jianjun, Executive Chairman of CEFC International said,
"Further to the strategic partnership that we established with CEFC China in September and became its exclusive overseas procurement and supply platform, it is encouraging to see that in addition to lifting our trading volume, the partnership has brought in several other related opportunities, such as the entry into bidding for this diesel trading agreement. As the diesel supplier of Dyneff with a specified trading volume during the contract period, the agreement is expected to secure a stable trade flow and improve the growth potential for revenue and profitability."
"Winning the tender is also an endorsement on our competitive advantage in the global market and demonstrating Dyneff's confidence in CEFC International's expertise and experiences in the European market."
"The agreement with Dyneff marks the expansion of CEFC International's trading business into Europe and an important milestone in our European market strategy. It's expected to bring in additional business opportunities and facilitate accelerated progress in building up our business network in Europe. Dyneff is an established fuel distributor in Europe with extensive business history, network and expertise accumulated throughout the past few decades. The partnership is built on Dyneff's trust and confidence in CEFC International, and is mutually beneficial. It will serve as a framework for both parties to achieve optimal outcome by integrating their respective resources, for CEFC International to enhance its business strategy in Europe, expand the trading business globally, and optimize its global asset allocation."
About CEFC International Limited
CEFC International Limited engages in the trading of petrochemical, fuel oil, and petroleum products, while actively exploring other opportunities along the value chain to vertically integrate with its trading business and diversify its revenue stream. Aiming to evolve into an integrated mid- and downstream oil and gas company with a focus on trading, CEFC International leverages on its superior trading expertise, well established customer and supplier base, and well-defined investment strategy to accomplish its objective. It has operations in Singapore, Hong Kong, Japan, Malaysia, mainland China, Europe, while continuing to develop other international markets.
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SOURCE CEFC International Limited