Two divisions boost Scomi Q1 profit

by **Cals** Sat 24 Aug 2013, 23:38

Published: Saturday August 24, 2013 MYT 12:00:00 AM
Updated: Saturday August 24, 2013 MYT 7:30:55 AM
Two divisions boost Scomi Q1 profit

PETALING JAYA: Scomi Group Bhd posted a net profit of RM1.48mil on revenue of RM377.49mil for the first quarter ended June 30, buoyed by an overall increase in gross profit margins and a higher profit posted by its oilfield services and marine services divisions.
As Scomi Group and its subsidiaries had changed their financial year-end to March 31 from Dec 31 previously, no comparative figures from a year earlier apply.
Revenue rose 15% to RM377.49mil from RM327.8mil in the preceding quarter, as its results continued to improve for the third successive quarter, driven by its energy services unit, it said in a filing with Bursa Malaysia.
“Strong demand for drilling fluids and drilling waste-management solutions in Malaysia, Thailand, Turkmenistan and West Africa contributed significantly to the group’s financial performance,” it said.
The company’s listed oil and gas unit, Scomi Energy Services Bhd (formerly known as Scomi Marine Bhd), recorded a net profit of RM23.52mil on revenue of RM320.9mil for the quarter.
The 13.3% increase in revenue from RM283.2mil in the preceding quarter was mainly due to its oilfield services segment, which recorded a higher revenue from South-East Asian markets, particularly Malaysia, as well as from West Africa, due to increased drilling activities.
“For marine services, the higher tonnage transported and increased utilisation rates of vessels contributed to increased revenue compared with the preceding quarter,” it said.
However, its transportation solutions arm, Scomi Engineering Bhd, saw a net loss of RM16.5mil on the back of RM56.62mil in revenue.
It attributed the RM14.9mil pre-tax loss to net unrealised foreign exchange losses of RM14.7mil from both the Mumbai and Sao Paulo Line 17 projects, as the Indian rupee and Brazillian real had weakened. Its income was contributed by the progress of its projects in Kuala Lumpur and Mumbai.