Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Feb 24): Scomi Energy Services Bhd saw its net profit for the third financial quarter ended Dec 31, 2014 (3QFY15) fall 9% to RM19.45 million or 0.83 sen per share from RM21.42 million or 0.91 sen per share, due to lower margin derived from both its oilfield and marine divisions.

Revenue for 3QFY15, however, rose 7% to RM419.49 million from RM391.75 million a year ago, mainly due to increase in activity levels in the oilfield services division, as well as additional revenue derived from TNB Fuel Service Sdn Bhd contract in the marine services segment.

For the nine months period to Dec 31, 2014 (9MFY15), Scomi Energy registered a 12% drop in net profit to RM61.62 million or 2.63 sen per share from RM70.02 million or 2.99 sen per share in 9MFY14, while revenue climbed 12.6% to RM1.17 billion from RM1.04 billion a year ago.

Going forward, Scomi Energy (fundamental: 1; valuation: 0.6) expects its oilfield services division to continue to be the major contributor to both its revenue and profit.

However, it cautioned that the recent drop in oil prices may have some impact to the exploration and production activities.

In a statement today, Scomi Energy chief executive officer Shah Hakim Zain said its country-specific strategy, combined with asset-light strategy, have somewhat mitigated the adverse impact of the low oil  price.

“We are also placing great emphasis on providing customised solutions which deliver the right and desired results to our clients,” he said, adding that the group has secured RM300 million worth of oilfield contracts in Congo, Malaysia and Nigeria.

“We are actively bidding for new tenders in our existing key markets where we anticipate level of activity to remain high for the foreseeable future,” he added.

Scomi Energy shares closed up 0.83% at 61 sen today, bringing a market capitalisation of RM1.43 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations)
 

      Print
      Text Size
      Share