Scomi posts wider net loss in first quarter

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 end-2017.”
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.