Offshore work delivers Scomi profits

Malaysian contractor Scomi Marine boosted third quarter profits by 39% year on year on continued high demand for its offshore services, as well as lower financing costs.

Scomi reported net third quarter earnings of 20.4 million ringgit ($5.7 million). Revenues rose 3% year on year in the quarter to 121.7 million riggit, boosted by higher contributions from its PT Rig Tenders and CH Offshore units.

The company said its marine logistics operations contributed 78% of revenues on higher tonnages carried, with the balance contributed by the offshore support business.

Scomi said operating profits had been hit by higher bunkering oil costs but were boosted by lower docking costs.

It said it would continue its oil and gas-focused fleet renewal programme despite uncertainties created by the global financial crisis. CH Offshore took delivery of one anchor handling and tug supply (AHTS) vessel in the period and is expecting a second before the end of the year, bringing to four the number of new AHTS vessels delivered this year. Two more similar AHTSs are expected in 2009 and 2010 respectively.

"Despite the uncertainty that is caused by the current financial crisis, we do see opportunities within the offshore support sector,” said chief executive Hakim Zain.

“We will consider investments in this sector as we evaluate the possibilities of being involved in the niche and technologically advanced mobile or specialty offshore vessels," added Hakim.