Tuesday, November 1, 2011

Scomi Group to exit US, Mexico, sells US$35m assets

KUALA LUMPUR (Nov 1): SCOMI GROUP BHD [] is exiting its business in the US and Mexico following the proposed disposal of its drill waste management assets in those countries'' for US$35 million (RM107 million) as it seeks to refocus on Asia.

The company said on Tuesday the assets would be disposed of to National Oilwell Varco, Inc's subsidiaries.

Scomi Group said the proposed disposals are in line with Scomi Group's ongoing business strategy to rationalise and streamline its existing assets by exiting from volatile markets to re-focus on Asia, a stable and growing market. 'Going forward, it is expected that that this business strategy will give stable earnings,' it said.

Scomi Group said it was repositioning itself in Malaysia by increasing its products and services portfolio within the upstream oil and gas industry and is expected to be able to capture a share in these markets given the increase of oil and gas related activities of Petroliam Nasional Bhd in Malaysia.

It said its subsidiary Scomi Oiltools Inc was selling its drilling waste management assets and business for US$25.03 million (RM76.74 million) to National Oilwell Varco, L.P.

Another subsidiary, Scomi Oiltools de Mexicos was selling certain assets used in its drilling waste management business to National Oilwell Varco Solutions S.A. de C.V. for for US$9.96 million (RM30.548 million).

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