By Kevin Tan
The Edge
Scomi Group Bhd expects its revenue to hit the US$1 billion mark (RM3.67 billion) by 2009 - more than triple the RM1.07 billion posted in 2005 - driven by organic growth and the acquisition and enhancement of new technology.
This year, it expects revenue to grow to about US$400 million mainly from its oilfield services, its group chief executive officer Shah Hakim Zain said.
âWe are growing at a very fast pace and certain markets this year will have 50% to 80% growth,â he told reporters after a media visit to its facility in Shah Alam yesterday. The bulk of its business (76% of last year's RM1.07 billion revenue) is derived from overseas.
As the company grows, Shah said the proportion of local business would shrink to less than 10% while foreign business would account for 90% of its revenue by 2009. It is operating in 35 countries.
âThe total drilling fluid and waste management market in the US is worth US$2.4 billion and we do a bit more than 1%. There is a huge potential for growth in the US alone,â he added.
To achieve its targets, Scomi has been involved in research and development of its drilling fluids through its RM6 million Global Research and Technology Centre (GRTC) in Shah Alam, which was opened in September 2005. GRTC costs RM3 million to run each year.
He said the company has no plans to be taken private following the proposed listing of its oilfield services on the Singapore stock exchange next year.
On talks of Petroliam Nasional Bhd (Petronas) awarding contracts to Scomi, Shah said Petronas is an international company with stringent international standards.
âWe tendered for everything. Itâs a tender process and itâs an open book tender process. In a tender, the cheapest guy wins,â he said, adding that Scomi supplied 40% to 50% of Petronas drilling fluids worldwide but business from the national oil company accounts for only 5% to 10% of its revenue.
He added that Scomi had submitted a report on its business activities and all government contracts it secured to Prime Minister Datuk Seri Abdullah Ahmad Badawi on Sept 6.
Shah also stressed that the company is one of only two providers of integrated drilling fluids and waste management service in the world.
"Scomi does not rely solely on Petronas and government contracts as its major revenue contributors,â he said,adding that its major customers also include Shell, Statoil of Norway and PDVSA Petroleo.
--
Posted by Raja Petra Kamarudin to News Commentaries at 9/14/2006 09:29:00 PM
The Edge
Scomi Group Bhd expects its revenue to hit the US$1 billion mark (RM3.67 billion) by 2009 - more than triple the RM1.07 billion posted in 2005 - driven by organic growth and the acquisition and enhancement of new technology.
This year, it expects revenue to grow to about US$400 million mainly from its oilfield services, its group chief executive officer Shah Hakim Zain said.
âWe are growing at a very fast pace and certain markets this year will have 50% to 80% growth,â he told reporters after a media visit to its facility in Shah Alam yesterday. The bulk of its business (76% of last year's RM1.07 billion revenue) is derived from overseas.
As the company grows, Shah said the proportion of local business would shrink to less than 10% while foreign business would account for 90% of its revenue by 2009. It is operating in 35 countries.
âThe total drilling fluid and waste management market in the US is worth US$2.4 billion and we do a bit more than 1%. There is a huge potential for growth in the US alone,â he added.
To achieve its targets, Scomi has been involved in research and development of its drilling fluids through its RM6 million Global Research and Technology Centre (GRTC) in Shah Alam, which was opened in September 2005. GRTC costs RM3 million to run each year.
He said the company has no plans to be taken private following the proposed listing of its oilfield services on the Singapore stock exchange next year.
On talks of Petroliam Nasional Bhd (Petronas) awarding contracts to Scomi, Shah said Petronas is an international company with stringent international standards.
âWe tendered for everything. Itâs a tender process and itâs an open book tender process. In a tender, the cheapest guy wins,â he said, adding that Scomi supplied 40% to 50% of Petronas drilling fluids worldwide but business from the national oil company accounts for only 5% to 10% of its revenue.
He added that Scomi had submitted a report on its business activities and all government contracts it secured to Prime Minister Datuk Seri Abdullah Ahmad Badawi on Sept 6.
Shah also stressed that the company is one of only two providers of integrated drilling fluids and waste management service in the world.
"Scomi does not rely solely on Petronas and government contracts as its major revenue contributors,â he said,adding that its major customers also include Shell, Statoil of Norway and PDVSA Petroleo.
--
Posted by Raja Petra Kamarudin to News Commentaries at 9/14/2006 09:29:00 PM
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