Scomi Group Bhd posted a revenue of RM224.7 million for the fourth quarter ended 31 March 2017 (Q42017), bringing its full financial year revenue to RM862.9 million.
This 38% drop in revenue for the year compared to the last financial year is attributable to the continuing subdued market conditions for the Company’s core business in upstream oil and gas and lower activities in its transportation division.
The Oilfield Services Division (OFS) remained the biggest revenue earner for the Group with 61% share at RM525.1 million. Meanwhile its Marines Services Division chipped in with RM175 million (20%) and Transport Solutions Division RM162.9 million (19%).
At profit before tax level (PBT), the Group recorded a loss of RM87.8 million for Q42017. On consolidated basis, the Group’s three divisions of OFS, Marine and Transport Solutions recorded a small core profit.
The reported loss of RM87.8 million was mainly the result of one off adjustments totaling RM84 million across the three business divisions. The adjustments are non-recurring and non-cash in nature. Going forward, the Group’s business divisions are taking various measures to ensure sustainability in its respective businesses.
Its OFS and Marine Divisions are working towards realising cash through an asset rationalization program involving non-core assets.
Coupled with its ongoing cost optimising exercise, these are to ensure the Division will have enough capital to sustain its operation while negotiating the difficult market conditions in the oil and gas industry.
Meanwhile the Transport Division will focus on completing its current portfolio of projects in Kuala Lumpur, Mumbai and Brazil. Completion of these projects will help improve cash flow and profitability. This will put the Division on a stronger footing as it continues to bid for projects locally and abroad.