Scomi secures RM140m worth of marine contracts

PETALING JAYA: Scomi Energy Services Bhd's marine services has secured more than RM140 million worth of contracts in the last four months mainly for transportation of coal and provision of offshore vessel services to clients in Indonesia, Malaysia and Thailand.
Its president of marine services, Mukhnizam Mahmud said, the company's target market remains in the Southeast Asian region, with Malaysia and Indonesia as the key locations for its coal logistics operations.
"We plan to continue bidding for more affreightment contracts to maximise the utilisation rates of our vessels as the region still presents good opportunities for the business," he said in a statement yesterday.
"Demand for coal from Malaysian coal-powered power plants is expected to increase for the next few years. This is in line with the projected increase in total electricity generated for the country," he added.
For its offshore services unit, which provides vessel services to the oil and gas industry, the company is actively bidding for work in India, Myanmar, Indonesia, Malaysia and the Middle East.
Scomi Energy said the strategy of expanding geographic footprint is necessary amidst the current weakened demand.
"We will continue to submit bids for both the offshore services and coal logistics contracts while we take measures to rationalise our business.
With a lean and efficient operations structure in place, we are optimistic of our chances despite stiff competition. As a Malaysian-based company, we are benefiting from the strengthening US dollar as 95% of our revenue is in that currency," added Mukhnizam.
Scomi Energy's s core businesses which comprise oilfield services and marine services, have a combined order book of over US$1.7billion (RM6.7 billion).