KUALA LUMPUR: Scomi Energy Services Bhd says the weaker ringgit has no major negative effects on its current financial year as the bulk of its business transactions are done using the US dollar.
“For us, weaker ringgit is a plus because most of our revenue (90-95 per cent) is in the US dollar,” its Chief Financial Officer, Mukhnizam Mahmud said.
At 9.10 am, the ringgit was quoted at 4.3000/3060 against the greenback.
However, the costs of Scomi Energy’s business in Malaysia, which are both in the US dollar and local currency, could be impacted, he said.
“Malaysia contributes only around 20 per cent to our overall revenue, while the rest are from Indonesia, Thailand, Myanmar, and Australia,” he told a press conference after the company’s annual general meeting here today.
For the first quarter ended June 30, 2015, Scomi Energy posted a pre-tax profit of RM17.57 million, down from RM30.77 million in the same quarter last year.
Revenue stood lower at RM333.8 million from RM365.72 million previously.
On China’s economic slowdown, Mukhnizam said as Scomi Energy did not have much presence there, it had no impact on the company.
Scomi Energy has substantial presence in the Middle East, especially Qatar and Abu Dhabi, where the market is still growing, Mukhnizam said.
The company order book currently stood at US$1.3 billion, which would keep it busy for the next three years and it has also submitted US$700 million worth of tenders worldwide. — Bernama