Scomi Marine expects 76% increase in revenue, profits

Malaysian firm Scomi Marine Bhd expect a 76% increase in revenue and net profit in financial year ending Dec 31, 2006, after boosting fleet size and capacity to transport coal, its chief financial officer Loong Chun Nee said as quoted by Malaysia's The Edge Daily Monday.

Scomi Marine was expanding its fleet to cope with the requirements of its main customer -- South Kalimantan mining company PT Adaro Indonesia ? which will increase its annual coal output to 36 million tonnes recently from 27 million tonnes last year.

Loong said last year, the company ordered 16 new tugs and barges, which would increase its fleet size to 159 vessels. Out of this, 91 would be tugboats and barges.

So far, 13 news tugboats and barges have been delivered and another three vessels would be delivered this year, Loong said.

She said these new vessels? capacity was up to 12,000 deadweight tonnes (dwt) each compared with the older vessels of between 4,000dwt and 8,000dwt each. The new vessels would be mainly used to transport coal along rivers in Kalimantan.

Loong added the company was looking for more business in Malaysia and had secured a letter of intent to transport coal of 500,000dwt of coal a year for Tenaga Nasional Bhd from Indonesia, Australia and South Africa.

The quantum to be paid to Scomi had yet to be finalised as it would depend on the location from which the coal would be transported. It would charter one or two Panamax vessels for this purpose, she added.(*)