Scomi Energy secures over RM140m worth of contracts

Scomi Energy Services Bhd has secured over RM 140 million worth of contract.

These jobs will transport coal to Malaysia, Thailand and Indonesia, they said in a statement on August 10.

The company said the order book of its combined core businesses comprising oilfield services and marine services is currently over US$1.7 billion (RM6.69 billion).

Scomi Energy’s marine services president Mukhnizam Mahmud said the company is still focusing on its target market in the Southeast Asian region with Malaysia and Indonesia being the key locations for the company’s coal logistics operations.

“We plan to continue bidding for more affreightment contracts to maximise the utilisation rates of our vessels as the region still presents good opportunities for the business,” he said.

“Demand for coal from Malaysian coal-powered power plants is expected to increase for the next few years. This is in line with the projected increase in total electricity generated for the country,” he added.

For its offshore services unit, which provides vessel services to the oil and gas industry, the company is actively bidding for work in India, Myanmar, Indonesia, Malaysia and the Middle East, the statement read.

Scomi Energy said this strategy of expanding geographic footprint is necessary amid the current weakened demand.

“We will continue to submit bids for both the offshore services and coal logistics contracts while we take measures to rationalise our business,” said Mukhnizam.

“With a lean and efficient operations structure in place, we are optimistic about our chances despite stiff competition. As a Malaysian-based company, we are benefitting from the strengthening US dollar as 95% of our revenue is in that currency,” he added.