Scomi Marine See Record 4th Quarter Results
Scomi Marine Bhd (Scomi Marine, formerly known as Habib Corporation Bhd), an associate company of Scomi Group Bhd, listed on the Main Board of Bursa Malaysia, announced a record net profit of RM20.3 million for the fourth quarter ended December 31, 2005, on the back of RM136.3 million in Turnover.
Cumulatively for the full financial year ended 31st December 2005, Scomi Marine recorded a Net Profit of RM24.5 million on the back of a Turnover of RM234.5 million. This is an increase of 703% and 105% respectively from the corresponding period in 2004.
The quantum increase in turnover and net profit is a result of the acquisition by Scomi Marine of the new businesses in the marine vessel transportation from Chuan Hup Holdings Ltd, namely the marine logistic business and the offshore marine support services. The acquisition was completed on September 30, 2006, making this the first quarter of fully consolidated marine vessel business.
The marine logistic services division generated a Net Profit of RM14.5 million on the back of a Turnover of RM84.4 million, making it the largest contributor to Scomi Marine's financial performance for the quarter under review. The Surabaya and Jakarta listed PT Rig Tenders Tbk ("PTRT") contributed RM8.7 million and RM3.3 million in Turnover and Net Profit to that of Scomi Marine.
Issues that impacted the quarter's results included adverse weather conditions resulting in reduced activities for its vessels as well as unplanned dry docking activities for maintenance of several vessels.
The prospect for 2006 continues to be good. It has 12 new vessels delivered to date with another 4 vessels expected to be delivered within the next four months. The new vessels are expected to contribute positively to Scomi Marine's turnover in 2006. Its increased shareholding in PTRT making it a subsidiary of the group is also another factor expected to positively impact the earning of the group for 2006.
Scomi Marine is also participating in tenders in Indonesia and Malaysia for more coal transportation business. Its strategy is to position itself as an energy logistic provider for the region.
Scomi Marine's plans going forward include leveraging on opportunities in offshore oil & gas support services for the international market, focusing on vessels with deepwater functionalities, end-to-end coal supply chain and also extracting better yield from its existing fleet.
Scomi Marine is an associate company of Scomi group which is involved in the oil and gas industry with core businesses in integrated drilling fluids and drilling waste management services and solutions, distribution of products and services, production enhancement chemicals, manufacturing business and marine vessel transportation.
- Ophir Production Cuts First Steel for Ophir Project WHP in Malaysia (Mar 08)
- Muhibbah Says Malaysia's Ophir Field WHP EPCIC Deal is Worth $21.7M-$23.4M (Nov 30)
- OPSB Awards Malaysia's Offshore Ophir Field WHP EPCIC Contract to Muhibbah (Nov 27)