Scomi Engineering posts Q3 losses of RM9.3mil

Published: Tuesday February 18, 2014 MYT 6:50:00 PM
Updated: Tuesday February 18, 2014 MYT 6:58:52 PM
Scomi Engineering posts Q3 losses of RM9.3mil

KUALA LUMPUR: Scomi Engineering Bhd posted losses of RM9.3mil in the third quarter ended Dec 31, although revenue came in at RM77.9mil as its projects continue to face delays and foreign exchange losses.

In the nine months to-date, the company registered losses of RM34.3mil on revenue of RM188.7mil.

Scomi Engineering said the losses were due mainly to net unrealised foreign exchange losses of RM4.5mil for the quarter and RM22.8mil for the financial year to date from both the Mumbai and Line 17 projects of its rail segment.

“The persistent volatility in currency markets and the delays in the overall completion of projects in India, Brazil and Malaysia are key factors impeding the performance of Scomi Engineering,” the company said.

It added that while critical steps taken had ensured the Mumbai Monorail Phase 1 was completed Feb 2, 2014, Phase 2 – expected to be completed in July 2015 – would continue to be challenging.

Similarly, while it has delivered the first train set to its KL client in Jan 2014 for the KL Monorail Extension Project, expected to be completed by early 2015, the project still faces delays that will have cost impacts.

Scomi Engineering said the board expected that the remaining months of the financial year ending March 30, 2014 would continue to be challenging.