Scomi has RM6.17m net loss for Q3

PETALING JAYA: Scomi Group Bhd made a net loss of RM6.17 million in the third quarter ended Dec 31, 2016 versus a net profit of RM5.71 million in the same quarter a year ago, due to lower contribution from the oilfield services segment.
Revenue fell 39.9% to RM224.58 million from RM373.95 million in the previous corresponding period.
The group ran a loss of RM39.55 million for the first nine months of FY17, despite making a net profit RM20.46 million in the preceding year’s corresponding period. Revenue declined 41.5% from RM1.09 billion to RM638.19 million.
Going forward, Scomi said any unfavourable outcome of its subsidiary Scomi Transit Project Sdn Bhd’s ongoing litigation with Prasarana Malaysia Bhd on the termination of the Kuala Lumpur Monorail Fleet Expansion Project, for which it is pursuing a time extension, could be adverse for the group.
Besides that, the group said it will continue to bid for new contracts in the drilling division and sees competitive pricing and a mutually beneficial value proposition with the customers as the key to growing its revenue, in spite of worse than expected financial performance in the first nine months of the year.
Similarly, it is seeking opportunities to secure competitive contracts for its offshore vessels given the strengthening of coal prices.