Friday, June 7, 2013

Scomi Group

It had secured a rm98.5 million contract from Dragon Oil Ltd for the provision of drilling and completion fluid services in Turkmenistan. Aside from the Turkmenistan project, Scomi Group can also look for synergistic oil and gas opportunities locally.

The group’s energy and logistics division has a marine fleet dedicated to offshore support services, highly sought after by major oil and gas contractors.

Observers noted that Scomi Group CEO Shah Hakim has been steadily accumulating Scomi shares over the past month, acquiring close to three million shares since early May 2013.

Scomi Group’s 65% owned subsidiary Scomi Energy services Bhd’s prospects are bright due to rm5 billion order book and the prospect of more contracts.

SES also has the potential to secure up to rm400 million worth of contracts by end 2013 which would be a catalyst for further upside. The government’s efforts to increase local O&G production bodes well for SES, which has a market share of 50% in the drilling fluid and drilling waste management segment.

Scomi Group’s transport unit, Scomi Engineering is on the brink of clinching a major monorail project in India. It is one of the two companies still left in the tender process.

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