SOON-TO-BE-LISTED SCOMI GROUP BHD expects its overseas oil and gas services business to contribute at least 40% to its income in the next three to five years, according to its president and chief executive officer Shah Hakim Zain.
In the past two years, a lot of activity had been generated to establish the group's presence in the oil and gas industry overseas. More people have come to know about us and we have had invitations from foreign companies in the oil and gas industry in Indonesia, Myanmar, Qatar and Sudan for talks. We have also submitted tenders for overseas project, Hakim said at a press conference after the launch of the company's prospectus in Kuala Lumpur yesterday.
He said Scomi's overseas business now contributed 10% to 15% of its total income and the group was looking towards Asean, the Middle East and North Africa as new areas of growth and business expansion for its oil and gas division, especially in mud engineering.
As at Dec 31, 2002, the oil and gas division was the group's main income generator, contributing 68% of the group's total turnover and 80% of its profit after tax.
For 2003, the group is targeting an increase of 28% in turnover to RM204mil compared with last year. It is also aiming for an after-tax profit of RM18mil for the year, versus RM15mil in 2002.
According to Hakim, the group has to date secured RM185mil in orders for the year.
Scomi chairman Tan Sri Asmat Kamaludin said various strategies had been drawn up to further support the group's growth.
He said the company would expand its offerings in the mud engineering industry, providing complementary and integrated products and services such as waste treatment and oilfield equipment.
Other strategies in the pipeline include teaming up with strategic partners in research and development, in which the group invests about RM500,000 to RM1mil yearly.
Asmat is optimistic that the group's listing on the KLSE second board would give it better access to the capital market and also place it in a better position to compete in international markets.
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