Rex diversifies business but banks on oil, gas for short-term value

S’pore-listed company bets on drones, medical tech for future growth as fossil fuels phase out

- Sue-Ann Tan

Singapore-listed oil and gas company Rex International is investing in drones and medical technology, betting that these new sectors will offer future growth as fossil fuels are gradually phased out in the transition to a greener planet.

Rex executive chairman John d'Abo told The Straits Times that oil will likely decline in demand in the years to come, so diversifying into other areas offering growth might pay dividends in the future.

The company is investing in Xer Technologies, which provides drones that can be used for inspections and monitoring gas emissions.

"Putting small investments into companies in potentially very large sectors was the thinking behind our diversification," Mr d'Abo said.

"We do not want to change the risk profile of the company at all.

But we want to have majority stakes in areas where we can help drive growth, where we can see that we can create shareholder value in a relatively short space of time." Another alternative investment for Rex is in medical technology, specifically in cancer therapy.

It has invested in Moroxite T, a Sweden-incorporated medical technology company that is developing a new system for the targeted delivery of anti-tumour drugs.

"Cancer therapy is a massive sector. Shareholder value can be created quickly, even in terms of pre-revenue through the filing and award of patents within that area," Mr d'Abo said.