Scomi posts wider net loss in first quar­ter

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Scomi Group Bhd re­ported a widened net loss of RM16.18 mil­lion for the first quar­ter ended June 30, 2017 against RM12.21 mil­lion in the pre­vi­ous cor­re­spond­ing pe­riod, due to losses across its three ma­jor seg­ments namely oil­field ser­vices, trans­port so­lu­tions and ma­rine ser­vices.

Rev­enue was down by 10% from RM237.56 mil­lion to RM213.81 mil­lion.

It told Bursa Malaysia the group re­mains cau­tious on its per­for­mance for the cur­rent fi­nan­cial year.

Scomi Group said oil­field ac­tiv­i­ties are likely to be slug­gish un­til the end of the year, but it con­tin­ues to ex­plore op­por­tu­ni­ties that re­quire min­i­mal in­vest­ment and to lever­age on the ex­ist­ing re­sources and com­pet­i­tive ad­van­tage.

“For Ophir pro­duc­tion, the well drilling cam­paign is ex­pected to be com­pleted by Au­gust/Septem­ber 2017. First oil is ex­pected by fourth quar­ter of cal­en­dar year 2017.”

For the ma­rine ser­vices di­vi­sion, Scomi said the sta­ble coal price has con­tin­ued to drive ac­tiv­ity at the coal unit and is ex­pected to con­trib­ute pos­i­tively to the bottom line of the seg­ment.

“How­ever, we ex­pect the off­shore ves­sels unit to con­tinue im­pact­ing the prof­itabil­ity of ma­rine ser­vices as we ex­plore all pos­si­bil­i­ties to char­ter out the ves­sels in a chal­leng­ing mar­ket.”

For the trans­port so­lu­tions di­vi­sion, Scomi Group con­tin­ues to in­ten­sify ef­forts to ex­pand busi­nesses in its cur­rent mar­kets of Brazil and India and to pur­sue new busi­nesses in var­i­ous strate­gic mar­kets such as China, Turkey and Asean for the rail seg­ment.

“For Mum­bai mono­rail project in India, work con­tin­ues on phase two with ex­pected com­mence­ment of op­er­a­tions of phase two be­fore end2017.”

Mean­while, Scomi Group’s 65.65%owned Scomi En­ergy Ser­vices Bhd swung to the red reg­is­ter­ing a net loss of RM17.15 mil­lion for the first quar­ter ended June 30, 2017 against a net profit of RM18 mil­lion in the pre­vi­ous cor­re­spond­ing pe­riod.

Rev­enue de­clined 17.6% from RM204.59 mil­lion to RM168.49 mil­lion.

For Scomi En­gi­neer­ing Bhd, a 72.33% sub­sidiary of Scomi Group, it reg­is­tered a net loss of RM14 mil­lion for the first quar­ter ended June 30, 2017 ver­sus a net profit of RM344,000 in the same quar­ter last year.

Rev­enue came in at RM45.32 mil­lion, 37.5% higher than the RM32.97 mil­lion it made in the pre­vi­ous cor­re­spond­ing pe­riod.

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