KUALA LUMPUR (Aug 21): Scomi Energy Services Bhd is still confident on the prospects of the oil and gas (O&G) industry, as it expects more business opportunities amid stabilising oil prices and the pickup of exploration activities this year. 

Speaking to the press after its annual general meeting here today, Scomi Energy chief financial officer Chako Kunjuvaru said the company is still holding on to some of its O&G assets, as it has seen oil rig activities pick up this year.

“Over the past two to three years, we have been operating in only one oil rig. But currently, we have contracts for five of them. Depending on whether the oil price can stabilise further, we may see more jobs coming in and we want to be ready when they do,” Chako said.

Meanwhile, Chako said the company is also looking at expanding its oil services business into offering more production cycle chemicals to new customers.

“We are lucky we have a customer in the Middle East willing to proceed with the trial of our new product offering, and we will use this track record to approach new customers in the area,” Chako said. 

However, Chako did not discount opportunities in other sectors under the chemical sub-segment. “In the future, we will also look into diversifying our chemical products into other industries outside of O&G as well,” he added.

For FY17, Scomi Energy’s losses widened to RM126.39 million, from RM2.73 million in losses in FY16, no thanks to low drilling activities. Revenue declined to RM700.06 million, from RM1.21 billion previously.

While it is waiting for more O&G jobs to roll in, Chako said the company is still mulling additional cost-cutting measures by reducing its assets, as well as a possible restructuring to centralise its operations under regional managements, from country-based managements currently. 

Shares of Scomi Energy, Scomi Engineering Bhd and Scomi Group Bhd has been voluntarily suspended from 3pm Thursday, Aug 17 until 5pm today, pending a corporate announcement.

Scomi Energy’s counter last closed 2.5 sen or 23.81% higher to 13 sen, for a market capitalisation of RM304.43 million.