Scomi works to fix its financials

Could the fortunes of beleaguered Scomi Group Bhd be changing following its settlement agreement with Prasarana Malaysia Bhd?

Scomi Group has been loss-making for some 11 consecutive quarters, and has seen its share price fall from the 90 sen level five years ago to its low of 4.5 sen earlier this year.

How its fortunes have changed from a decade ago.

It was once an oil and gas darling in the early 2000s under then CEO Shah Hakim Zain and his partner Tan Sri Kamaluddin Abdullah. Barely a year after its debut on Bursa Malaysia in May 2003, the stock was trading close to the RM20 level because of its potential from new contracts as well as mergers and acquisitions.

Today, it is saddled with long-term borrowings of RM119.84mil and short-term borrowings of RM566.09mil. The company is also cashflow negative, with a deficit of RM25.98mil as of Dec 31, 2018.

For the nine months period to Dec 31, 2019, total losses stood at RM75.55mil on the back of RM421.97mil. Losses in the previous year stood at RM90.58mil on the back of RM571.7mil in revenue.

To make matters worse, on Feb 13, Scomi told Bursa Malaysia that it had defaulted and received a notice of demand from Malayan Banking Bhd for RM201.91mil.

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Corporate News , Scomi , Prasarana , dispute