Scomi En­ergy posts RM24m Q2 net loss

The Sun (Malaysia) - - SUNBIZ -

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.

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