Scomi Lands OCTG Contract from Saudi Arabia
Scomi Engineering has received another major order from Saudi Aramco for the supply of Oil Country Tubular Goods ("OCTG"). The order was awarded to Scomi Engineering's Singapore machine shop unit, OMS Oilfield Services Pte. Ltd. ("OMS").
The order is for the supply of large diameter casing pipes and connectors. The casing pipes will be equipped with our proprietary JV-LW connectors and supplied in lengths of between 38 feet to 42 feet each. The order is targeted for delivery within second and third quarter this year. This order is expected to contribute approximately RM35 million to the revenue of Scomi Engineering.
This is the fourth straight successful order for this material from Saudi Aramco since OMS penetrated the market a few years ago.
The machine shop unit continues to remain the most profitable of Scomi Engineering's businesses. For the financial year 2005, the machine shop unit contributed 73% to the turnover of Scomi Engineering.
"The ability of Scomi Engineering's machine shop unit to deliver quality products and reliable service has ensured the continuity of orders from our clients." said Hilmy Zaini, Senior Vice President, Scomi Engineering.
"We will continue to aggressively market our services and to extend our market presence in the Asia Pacific & Middle East region." he continued.
Scomi Engineering continues to consolidate its position as an energy and logistic engineering company with businesses comprising of machine shop services for Oil Country Tubular Goods, transportation engineering, and fleet management services.
Scomi Engineering was re-listed on the Second Board of Bursa Malaysia Securities Berhad on January 26, 2006. On proforma basis, Scomi Engineering recorded a Net Profit of RM27.4 million on the back of a turnover of RM210.1 million for the financial year ended December 31, 2005. Scomi Engineering contributed 20% to the revenue results of Scomi's financial year ended December 31, 2005. The machine shop unit makes up 14.5% of this contribution.
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