Tuesday, August 23, 2011

Scomi Group 2Q net profit surges to RM14.99m

KUALA LUMPUR: SCOMI GROUP BHD [] net profit for the second quarter ended June 30, 2011 surged to RM14.99 million from RM3.62 million, due mainly to better performance by the oilfield services division, largely fuelled by growth in the Eastern Hemisphere.

It said revenue for the quarter however fell to RM398.17 million from RM429.29 million in 2010 due to lower turnover in the oilfield services division's Middle East and Western Hemisphere, particularly Europe, operations.

In addition, the lower revenues were also due to the weakened US Dollar, which had depreciated by approximately 10% against Malaysia Ringgit, since Q2 2010.

Earnings per share rose to 1.08 sen from 0.26 sen in 2010, while net assets per share was 71 sen.

For the six months ended June 30, Scomi's net profit rose to RM25.02 million from RM17.19 million a year earlier, despite posting lower revenue of RM735.56 million from RM888.56 million in 2010.

On its prospects, Scomi said it was cautiously optimistic of improved earnings for the current year on the back of the projected increase in drilling activities in Malaysia and its neighbouring countries, where the group's oilfield services division will likely benefit.

The company said it also expects better performance from its Transport Solutions Division arising from better cost management and contributions from its Kuala Lumpur Monorail Fleet Expansion project in Malaysia.

Scomi said the group had secured two large projects together with its Consortium partners in Brazil and would continuously pursue opportunities in monorail projects especially in Malaysia, Brazil and India to capitalise on the increasing demand and opportunities for infrastructure development in these countries.

'The group continues to focus on project execution and stronger cost management to achieve better performance,' it said.


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