Scomi posts RM68m fourth quarter net loss

PETALING JAYA: Scomi Group Bhd swung to the red registering a net loss of RM68.04 million for the fourth quarter ended March 31, 2017 from a net profit of RM2.08 million in the previous corresponding period, dragged down by non-cash one-off adjustments totaling RM84 million across its three business divisions.

Its revenue fell 23% from RM291.73 million to RM224.75 million, due to the continuing subdued market conditions for the core business of upstream oil and gas and lower activities in its transportation division.

Scomi said in a statement that the oilfield services (OFS) division remained its biggest revenue earner with a 61% share at RM525.1 million, while the marine services division chipped in with RM175 million and transport solutions division RM162.9 million.

Going forward, the group noted that it is taking various measures to ensure sustainability in its respective businesses.

Its OFS and marine divisions are working towards realising cash through an asset rationalisation program involving non-core assets.

“Coupled with its ongoing cost optimising exercise, these are to ensure the division will have enough capital to sustain its operation while negotiating the difficult market conditions in the oil and gas industry,” it said.

Meanwhile, Scomi’s transport division will focus on completing its current portfolio of projects in Kuala Lumpur, Mumbai and Brazil, which will help improve cash flow and profitability and put the division on a stronger footing as it continues to bid for projects locally and abroad.