It is not what you know but who you know
Raja Petra Kamarudin
Scomi Group Bhd is an investment holding company with subsidiaries involved in the oil and gas support services. As at 2nd March 2006, Scomi has a total of 995.2 million shares of RM0.10 each with an authorised share capital of RM300 million and paid up share capital of RM99.52 million.
Scomi Group’s core business is in the oil and gas industry, offering the following products and services:
• drilling fluids and related engineering services for drilling operations;
• provision of drilling waste management solutions;
• distribution of products & services;
• supply of industrial & production chemicals & production enhancement;
• marine vessel;
• engineering business;
Scomi’s business operations are conducted through its main subsidiary and associate companies:
• Kota Minerals & Chemicals Sdn Bhd
• KMC Oiltools Bermuda Limited
• Scomi Marine Bhd
• Scomi Engineering Bhd
Registered office:
Suite 5.03, 5th Floor
Wisma Chase Perdana
Off Jalan Semantan
Damansara Heights
50490 Kuala Lumpur
Malaysia
Top Shareholders (with shareholding)
1) Kaspadu Sdn Bhd – Direct 209,815,055 (21.33%) and Indirect 155,121,970 (15.77%) held through Onstream Marine Sdn Bhd
2) Onstream Marine Sdn Bhd – 155,121,970 – 15.77%
3) Shah Hakim @ Shahzanim bin Zain – Direct 1,250,000 (0.13%) and Indirect 364,937,025 (37.1%) held through Kaspadu Sdn Bhd
4) Kamaludin bin Abdullah – 364,937,025 (37.1%) held through Kaspadu Sdn Bhd
5) Employee Provident Fund Board – 49,796,600 (5.06%)
Directors (shareholding)
1) Tan Sri Datuk Asmat bin Kamaludin – Chairman (400,000)
2) Tan Sri Nik Mohamed bin Nik Yaacob
3) Datuk Hamzah bin Bakar
4) Datuk Haron bin Siraj (120,000)
5) Dato’ Mohammed Azlan bin Hashim
6) Dato’ Mohamed Azman bin Yahya (400,000)
7) Foong Choong Hong (160,000)
8) Mukhnizam bin Mahmud (85,800)
9) Shah Hakim @ Shahzanim bin Zain (1,250,000)
Kaspadu Sdn Bhd (Scomi’s main shareholder)
Company number: 259131V
Date of incorporation: 9 March 1993
Authorised capital: RM100,000.00
Paid up capital: RM100,000.00
Directors:
Mukhnizam bin Mahmud
Shah Hakim @ Shahzanim bin Zain
Hilmy Zaini bin Zainal
Kamaluddin bin Abdullah
Shareholders (number of shares of RM100 each):
Nazimah binti Syed Majid (27,500)
Kamaluddin bin Abdullah (36,250)
Shah Hakim @ Shahzamin bin Zain (36,250)
Financial Highlights (as at 31 December 2002):
Fixed Assets: RM20,494,464.00
Total Investments: RM1,283,384.00
Current Assets: RM97,213,927.00
Other Assets: RM7,150,228.00
Total Assets: RM64,802,835.00
Share Premium and Reserves: RM939,307.00
Unappropriated Profits: RM6,239,009.00
Minority Interest: RM30,130,589.00
Long Term Deferred Liabilities: RM27,393,930.00
Current Liabilities: RM61,339,168.00
Operating Revenue: RM158,554,242.00
Profit Before Taxation: RM18,749,144.00
Profit Carried Forward: RM6,239,009.00
25 February 2005: Scomi earnings surge 340%
Scomi Group Bhd’s earnings surged 340% to RM61.50 million for the year ended Dec 31, 2004, with the oil and gas (O&G) division contributing 97% of the net profit. The previous year’s net profit was RM14.02 million.
Announcing the results on Feb 25, the company said revenue jumped 263% to RM590.45 million, with the bulk from O&G, compared with RM162.47 million a year ago. Earnings per share was 6.95 sen.
“The O&G division had benefited from the increase in exploration, development and production activities in the oil and gas industry,” it said in a statement.
Scomi said the acquisition of a 77.7% interest in KMC Oiltools Bermuda Ltd (Oiltools) contributed positively to the revenue and profits.
“Although only two quarters of Oiltools’ results were consolidated, approximately 44% and 39% of the group’s revenue and profits, respectively, were contributed by Oiltools,” it said.
The company said the O&G division’s drilling fluids unit had secured new businesses in 2004. They were the supply of drilling fluids to Murphy Oil Sarawak and synthetic-based mud to Sarawak Shell Bhd and Sabah Shell Petroleum Co Ltd.
For the fourth quarter, Scomi recorded a net profit of RM21.42 million, which was more than the RM14.02 million for the entire financial year of 2003. For the quarter, revenue jumped to RM213.20 million compared with RM58.11 million.
Scomi said the higher net profit was also due to certain non-taxable foreign sourced income, low tax rate for foreign subsidiaries and also credits arising from the acquisition of the remaining 50% of KMC Oiltools’ stake in Shetland Oiltools Ltd.
24 January 2006: Scomi lands RM1.5 billion contracts
Scomi Group Bhd’s unit has secured contracts that are expected to generate some US$400 million (RM1.5 billion) in revenue through the provision of drilling fluids materials, equipment and services.
Its unit, Kota Minerals and Chemicals Sdn Bhd (KMC), had received the letters of awards from Petronas Carigali Sdn Bhd, Sarawak Shell Bhd, Sabah Shell Petroleum Co Ltd, ExxonMobil Exploration and Production Malaysia Inc and Nippon Oil Exploration (M) Ltd.
“Based on the number of wells indicated in the joint tender document, the company estimates the revenue to be generated from the contracts to be about US$400 million (RM1.5 billion),” it said in a statement on Jan 24.
KMC received the last letter of award on Jan 19, it said. The contracts were expected to be for four years with an option to the tender parties to extend for another two years, it added.
Scomi said KMC was finalising the terms and conditions of the contracts to be signed with the tender parties.
24 February 2006: Scomi breaches RM1b revenue mark
Scomi Group Bhd’s revenue crossed the RM1 billion mark in the year ended Dec 31, 2005, rising 81% to RM1.07 billion from RM590.46 million.
Its net profit soared 146% to RM151.69 million from RM61.49 million previously, on the back of strong contributions from its international commitments.
Basic earnings per share rose to 15.59 sen from 6.95 sen.
Scomi is involved in the oil and gas industry and has five core competencies: oilfield services, engineering, offshore marine, distribution, and product enhancement. Of the five areas of competencies, oilfield services was the largest contributor to turnover.
International markets contributed 73% to revenue with Asia Pacific the largest contributor. The company operates in the Americas, Europe, the Middle East and North and West Africa.
Other contributors were from the disposal gain of Scomi’s manufacturing business to Scomi Engineering Bhd and a lower effective tax rate derived from certain non-taxable foreign sourced income and low tax rate for foreign subsidies.
Scomi expects to focus on organic growth and balance sheet management. It is expected to evaluate its options to increase yields from its assets like its vessels and drilling waste management equipment.
In a statement on Feb 24, Scomi Oilfield Services president Chris Pianca said: “The exponential growth of our turnover year-on-year is testimony to our strong foundation. With our global presence in 34 countries and cross selling of our products, we are well positioned to take advantage of the expected increase in drilling activities worldwide.
“Although the price of oil remains high, the impact to drilling activities is gradual. The oil and gas industry is seeing a significant increase in the infrastructure set up such as rig and vessel constructions. This will result in an increase in drilling activities at a later stage that will positively impact our business,” he added.
28 March 2006: Scomi Engineering wins another major order
Scomi Engineering Bhd’s Singapore machine shop unit, OMS Oilfield Services Pte Ltd, has received another major order from Saudi Arabian Oil Company (Saudi Aramco) for the supply of large diameter casing pipes and connectors.
In a statement on March 28, Scomi Engineering said the order, which is targeted for delivery in the second and third quarters, could contribute about RM35 million to revenue.
It said this was the fourth straight successful order for the material from Saudi Aramco since OMS penetrated the market a few years ago. For the 2005 financial year, the machine shop unit contributed 73% to the turnover of Scomi Engineering.
“We will continue to aggressively market our services and to extend our market presence in the Asia Pacific and Middle East regions,” said Scomi Engineering’s senior vice president, Hilmy Zaini.
14 April 2006: Scomi Marine gets Tenaga coal shipments job
Scomi Marine Bhd has received a letter of intent from TNB Fuel Services Sdn Bhd for a coal shipment contract for three years from Oct 1, with an option to extend for another two years, the company said.
Scomi Marine told Bursa Malaysia on April 14 that under the contract, it would be required to transport 500,000 tonnes (with 20% variation) of coal from Australia, Indonesia and South Africa yearly.
It said TNB Fuel Services would determine the actual quantity of coal to be transported and from which country upon finalisation of the contract.
Scomi Marine is involved in the marine logistics business of the energy sector. It said the contract was in line with its plans to expand its coal transportation business, involving inter-country marine logistics services.
28 April 2006: Scomi acquires 51% of MTrans for RM30 million
Scomi Engineering Bhd is acquiring a 51% stake in MTrans Transportation Systems Sdn Bhd for RM30 million to provide it a platform to be a key player in urban transportation.
Scomi Engineering had on April 28 signed an agreement with Kiara Kilau Sdn Bhd, which owns 100% stake in MTrans, to acquire the 51% stake. MTrans owns bus manufacturer MTRans Bus Sdn Bhd and MTRans Technology Bhd, which specialises in monorail systems and technology.
Scomi Engineering senior vice president Hilmy Zaini said the strategic acquisition is in line with its focus on energy and logistics engineering.
“With its range of core competencies, MTrans will enhance Scomi Engineering’s capability in the fabrication, assembly and fittings of special-purpose vehicles, particularly buses,” he added.
Scomi Engineering is involved in the fabrication of special purpose vehicles such as petroleum tankers, ambulance, fire engine, defence vehicles.
The acquisition will enhance Scomi Engineering’s current logistics engineering capabilities by diversifying the range of products that Scomi Engineering would be able to offer.
MTrans owns a 22-acre factory in Rawang Industrial Zone. The facility will be an addition to Scomi Engineering’s current infrastructure in the logistics engineering business and increase Scomi Engineering’s overall manufacturing capacities.
“With its proven technology in cost-effective fuel emission systems, particularly in urban bus projects, MTrans has established a presence in Hong Kong and Bangladesh and is looking at other Asian and Middle Eastern markets,” Hilmy said.
He added that the acquisition of MTrans would enable Scomi Engineering to bid and secure urban bus projects anywhere in the world.
11 May 2006: Scomi secures another RM80m order from Saudi Arabia
Scomi Group Bhd subsidiary Scomi Engineering Bhd has received another major order from Saudi Arabian Oil Company (Saudi Aramco) valued at RM80 million for the supply of Oil Country Tubular Goods (OCTG).
In a statement on May 10, Scomi said the order was awarded to Scomi Engineering’s Singapore machine shop unit, OMS Oilfield Services Pte Ltd.
It said the order was the single largest order received todate since OMS penetrated the market in 2003.
Scomi said the expected contribution to Scomi Engineering’s turnover of about RM80 million would be realised in the fourth quarter of this year and the first quarter of 2007.
It said the contract value was more than doubled the previous one awarded by Saudi Aramco last March. “The total value of all contracts awarded by Saudi Aramco to OMS for this year has increased to about RM115 million.”
