Scomi eyes RM1b worth of renewable energy projects
Scomi Group Bhd hopes to clinch an estimated RM1 billion worth of renewable energy (RE) projects by end of its next financial year. The company said RE will create growth opportunities for the group
Scomi Group Bhd hopes to clinch an estimated RM1 billion worth of renewable energy (RE) projects by end of its next financial year. The company said RE will create growth opportunities for the group.
Scomi Group chief financial officer Mukhnizam Mahmud said the group is placing its bets on the RE sector partly because the company sees no increased activity for its oilfield services business segment. Mukhnizam said this is despite the recent recovery in crude oil prices.
“We think that [the RE industry] is the growth industry for us, such as in hydro and solar energy. We are bidding for several projects and are in talks with potential partners,” he told reporters after Scomi Group’s extraordinary general meeting (EGM) here today.
Mukhnizam said Scomi Group is looking to secure an estimated RM1 billion worth of RE projects by next financial year ending March 31, 2019. He said most of the projects will be local.
According to him, the group is also eyeing overseas markets such as Pakistan and Vietnam, where hydropower projects may present opportunities to Scomi Group.
During the EGM, Scomi Group shareholders had approved the company’s proposed share consolidation and bonus warrant issue. The shareholders also approved Scomi Group’s planned merger with Scomi Energy Services Bhd and Scomi Engineering Bhd.
At 2:17pm, Scomi Group shares were traded at 17 sen for a market value of RM323.52 million. The stock saw some nine million shares traded.
Source: The Edge Markets
