SCOMI GROUP'S FY21 NET LOSS NARROWS TO RM16.77 MLN

KUALA LUMPUR, Oct 1  -- Scomi Group Bhd’s (SGB) net loss narrowed to RM16.77 million for the financial year ended June 30, 2021 (FY21), from RM242.14 million in the previous year.

In the fourth quarter (Q4), the group’s net loss shrank to RM6.33 million from RM133.57 million a year earlier, the Practice Note 17 (PN17) company said in a filing with Bursa Malaysia.

To recap, in the previous year’s corresponding quarter, SGB had incurred share of losses of RM22.6 million from subsidiary-turned associate Scomi Energy Services Bhd (SESB), which was subsequently reclassified to available-for-sale asset as at March 31, 2021.

In Q4 FY20, there was also a provision for redemption of pledged shares of RM94.4 million arising from demand by Malayan Banking Bhd due to then-indirect subsidiary Scomi Rail Bhd defaulting in payment to the bank, as well as losses of RM91.5 million recognised from deconsolidation of SESB as a subsidiary.

For FY21, SGB recorded no revenue either for the quarter or for the full year.

In a separate statement, it explained that the Q4 FY21 loss was mainly a result of fair value adjustment on other investment of RM3.4 million and provision for redemption of pledged securities of RM3.2 million.

"In the preceding quarter, SGB had registered a profit primarily due to the reclassification of SESB from an associate company to ‘other investment’.

"Subsequently there are no results accounted for SESB in this quarter," it said.

On the matter of its PN17 status, the company said it had obtained an extension of time from Bursa Malaysia Securities Bhd for the submission of its regularisation plan to Feb 28, 2022, from Aug 29, 2021.

“The extension offers a reprieve to the company to consolidate and augment the various initiatives it is undertaking to ensure a viable plan is formulated as part of its restructuring efforts towards the upliftment of the PN17 status,” it added.

"Whilst the management’s focus for the business of the company continues to be in the rail industry for both conventional rail and monorail, they have also expanded its business profile to include energy management solutions which includes renewable energy," SGB said.

On prospects, it said the business development efforts expanded during the year would prove beneficial towards the company's revitalisation.

"The partnerships that are being forged as well as the expertise being brought to the table will equip the company to develop and grow the business of SGB," it added.

-- BERNAMA