Scomi Energy's profit down 26% to RM18.5 mln on lower margins

by **Cals** Fri 21 Nov 2014, 01:56

Scomi Energy's profit down 26% to RM18.5 mln on lower margins

UALA LUMPUR (November 20): Scomi Energy Services Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) reported a net profit of RM18.5 million for its second quarter ended Sept 30, 2014, down 26% year-on-year (y-o-y) from RM25.1 million, due to lower margins although revenue was higher.
The group’s revenue rose 18% to RM389.4 million for the quarter from RM330.4 million in the year before.
In its filing with the exchange, Scomi said both its oilfield services and marine services segments reported lower margins for the quarter.
Its marine services segment also experienced lower vessels' utilisation rates.
It said increased revenue was mainly due to “increase in activity levels in the oilfield services division, as well as additional revenue from a new coal transport contract in the marine services division”.
For the first half of its financial year, net profit was 13% lower at RM42.2 million compared to RM48.6 million while revenue increased 16% to RM755.1 million from RM651.2 million.
Going forward, the group expects to perform better in the second half of its current financial year, with its oilfield services to continue being the main driver of revenue and profit growth.
“We are expecting a better second half for FY2015 in anticipation of pick-up of operations within the South East Asian region. However, the recent drop in oil price could have some impact to the exploration and production activities,” said Scomi.
The group remains cautious on its marine services segment due to the scaling down of mining activities resulting from lower coal prices in Indonesia.
Scomi closed unchanged at 70 sen for a market capitalisation of RM1.64 billion.