Scomi Engr loss widens to RM70.7m

(Bernama) – Scomi Engineering Bhd posted a higher pre-tax loss of RM70.721 million for the financial year ended Dec 31, 2011, from RM16.65 million recorded the same period in 2010. Revenue fell to RM303.65 million, during the period under review, from RM400.785 million registered in the corresponding year.

In a filing to Bursa Malaysia today, Scomi attributed the weak performance to higher unrealised foreign exchange losses from translation of accrued receivables and project revenue revision due to the further weakening of the Indian Rupees against the ringgit.

“The group’s result was also affected by lower value of work done and

project costs revision due to project delay for the Mumbai monorail project,” it added.

Going forward, Scomi said the group would continuously pursue opportunities in monorail projects especially in Malaysia, Brazil and India to capitalise on the increasing demand for infrastructure development in these countries.

“The volatility of the rupee against the ringgit coupled with project delay will affect the performance of the Mumbai monorail project,” it added.

Notwithstanding this, Scomi said the rail segment continued to focus on project execution for its Kuala Lumpur and Brazil monorail projects and that it would endeavour to complete the Mumbai monorail project within the agreed revised timelines.

“The board expects the group performance to improve this year with the  contribution from the Kuala Lumpur and Brazil monorail projects while the Mumbai monorail project was challenging as the rupee remains weak,” it added.