IEG, which intends to own and manage oil storage facilities as part of its longer-term growth strategy, posted a net profit of US$0.7 million in 2Q17 – a reversal from its loss of US$0.1 million in the corresponding quarter the year before.
As a result, NSG’s group revenue for the quarter grew to US$123.8 million from US$6.3 million a year ago, more than 20 times higher as compared to group revenue of US$69.3 million in the previous quarter.
Purchases, however, more than offset the higher revenue by increasing to US$126.7 million in the quarter from US$6.2 million a year ago mainly in accordance to increased oil sales by IEG.
Notably, NSG registered US$33.6 million in cash flow from operating activities, as compared to cash flow used in operating activities of US$0.8 million, which the group says is substantially due to increased oil trading activities, and careful cash management.
As at Dec 31, the group’s cash and cash equivalents increased to US$42.2 million from US$3.6 million as at Jun 30.
As part of efforts to diversify its income stream, NSG said earlier this month it would acquire an 80% stake in CG Capital Markets Holdings LLC, a broker-dealer and investment bank based in New York.
The group in December last year completed its acquisition of a 51% stake in Singapore’s Healthsciences International (HSI).
Shares of NSG closed 1.1% higher at 90 cents on Monday.
