Monday, November 29, 2010

SCOMI ... Nov10

Scomi Group Bhd is making further inroads into the urban rail market in India.

The alliance between Scomi Group and state-owned Engineering Projects (India) Ltd (EPI) will see both firms exploring, in the immediate term, monorail and mass rapid transit (MRT) construction jobs in at least three cities in India, as well as two South Asian countries.

Both companies would collaborate in joint ventures or consortiums identified by either party in India and abroad. They intended to explore engineering, procurement and construction projects.

The partnership will look at raising funds specific to each project. Scomi and EPI would continue to seek support from financial institutions in India for these projects.

To recap, Scomi Group Bhd’s 67.3%-subsidiary Scomi Engineering Bhd recently signed a three-year memorandum of understanding with EPI to jointly undertake monorail and MRT projects in India and global markets.

Scomi Group is not new to the Indian urban transportation landscape. Together with its India-based partner Larsen & Toubro Ltd it secured the first monorail project in Mumbai worth some RM1.8 billion in November 2008.

Scomi Group is also eyeing monorail jobs in Brazil.

Net profit in 2QFY10 ended June 30 fell to RM3.62 million, or 0.26 sen a share compared with RM20.85 million or 2.07 sen a share a year earlier. Revenue fell 17.3% to RM429.3 million from  RM518.87 million.

Earlier Nov 2010, speculation that new major shareholders in the form of Indonesian investors and Middle Eastern funds may emerge in the company. Scomi Group denied market talk on the matter.

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