Scomi Energy posts RM24m Q2 net loss

PETALING JAYA: Scomi Energy Services Bhd has posted a net loss of RM24.06 million in the second quarter ended Sept 30, 2016 (Q2FY17), against a net profit of RM12.52 million in the same period last year, due to lower drilling activities and tonnage carried for coal with excess capacity cost affecting margins and the bottom line.

Revenue halved to RM145.5 million, compared with RM294.4 million in the previous corresponding quarter.

Commenting on its drilling services outlook, the company said it expects the oil price to remain muted in the near term, noting it will continue to diversify its product lines by capitalising on its initiatives with its business partners.

“Customers are not investing significantly resulting in low revenue. Our primary focus continues to be in the area of cost optimisation and bringing new products to market in existing countries,” it said.

On marine services, the company said it will continue to explore opportunities to charter out the vessels at competitive rates.

“Coal prices have been strengthening which creates opportunities for higher utilisation of our vessels. Offshore vessels continue to remain unutilized though management is focused on being very competitive with our charters,” it added.

Scomi Energy, an associate company of Scomi Group Bhd, provides integrated upstream drilling services and marine logistics solutions for the energy and logistics industries.

For the six months period, it posted a net loss of RM42.06 million, from a net profit of RM24.5 million a year ago, while revenue plunged 44.3% to RM350 million, against RM628.25 million previously.