Scomi Marine has posted a higher net profit and revenue for third Quarter 2008 of RM20.4 million and RM121.7 million respectively. This represents an increment of 39 percent and 3 percent respectively compared to the corresponding quarter of 2007.
The improvement in net profit was attributed to better efficiencies within the Company, lower financing costs and higher contribution from its offshore division, namely PT Rig Tenders and CH Offshore, which is supported by the continued strong demand for offshore vessels.
Operations continue to be affected by the higher cost environment primarily from higher bunker cost. The bunker cost has increased by RM9.1 million for the quarter compared to the corresponding quarter. However, the effects of the higher bunker costs were cushioned by the lower docking costs during the quarter.
The higher revenue was contributed by the increased tonnage carried under its Marine Logistics division and increase contribution from its oil and gas division. The Marine Logistics division continued to be the highest contributor of revenue at 78 percent while the balance was contributed by its Offshore Support business.
"In the current challenging operating environment, the focus continues to be on improving efficiencies and cost management. However, we will still continue to assess opportunities with our business partners in the coal transportation and offshore support vessel segment to enhance our position in these areas," said the Group CEO, Shah Hakim Zain.
As a top marine transportation provider for coal in Indonesia with our current partners, SMB is looking to consolidate that position to ensure we remain an important cog in their logistics requirement. In addition, we shall consider new opportunities to leverage our vast experience and expertise into other markets and related operations as we also evaluate the prospect of expanding into the broader bulk and liquid chemicals shipping segment in the long term.
The company will continue with its fleet renewal program with a focus on the oil and gas sector.
Our associated company CH Offshore accepted delivery of one deepwater anchor handling tug & supply (AHTS) vessel this quarter. Another delivery is expected towards the end of this year making it 4 deepwater AHTS for this year. CH Offshore is expecting 2 more deepwater AHTS of similar capacity in 2009 and 2010.
"Despite the uncertainty that is caused by the current financial crisis, we do see opportunities within the offshore support sector. We will consider investments in this sector as we evaluate the possibilities of being involved in the niche and technologically advanced mobile or specialty offshore vessels," added Shah Hakim.
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