SCOMIMR ... Sep10

Backed by the extraordinary gain from the disposal of its associate stake in CH Offshore Ltd, marine logistics player Scomi Marine Bhd announced a RM55.4 million profit in its second quarter for the period ended June 30, 2010.

The company stated that excluding the gain on disposal, net profit from the company’s operations was registered at only RM6.5 million. This was 71% lower compared to the same quarter last year and was a result of lower margins from the marine logistics and offshore support sectors.

Revenue for the second quarter was RM101 million, which is RM9.9 million or 8.9% lower compared to RM110.9 million recorded in the corresponding quarter a year ago. In the corresponding quarter a year ago, Scomi Marine registered a net profit of RM22.8 million.

The lower revenue this quarter was mainly due to the translation loss as the US dollar weakened against the Malaysian ringgit during the said period.

Scomi Marine has been undergoing a transformation by divesting some of its logistics businesses and undertaking an exercise to bring in new shareholders to reduce gearing.

In April 2010, Scomi Marine completed the disposal of its 29.07% for S$143.5 million (RM331.3 million), registering a gain of RM59.13 million. It further went on an asset divestment exercise in July 2010 where Scomi Marine proposed the sale of its 80.54% interest in Indonesian-listed PT Rig Tender in an exercise that will see the entry of a new shareholder in the Indonesian-listed entity.

Scomi Marine’s stake would be reduced to 20% in PT Rig Tender but the exercise will turn the Malaysian company into a cash-rich shell.

For the first six months this year, Scomi Marine recorded a net profit of RM69 million on a revenue of RM203.9 million. In the corresponding period last year, it registered a net profit of RM7.9 million on a turnover of RM221.3 million.

It will continue to service its existing contracts, which mainly encompass coal logistics.