KUALA LUMPUR (July 10): Scomi Energy Services Bhd (KL:SCOMI) has decided not to proceed with the regularisation plan it announced in January, which include diversification into the construction business and the entry of the founder of Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA) as its major shareholder, ahead of the July 31 submission deadline.

Since entering Practice Note 17 (PN17) status four years ago, Scomi Energy has been granted multiple extensions to submit its regularisation plan. Most recently, on Jan 17, the group received a seven-month extension to submit the plan. Bursa Malaysia had earlier warned of potential delisting if Scomi Energy failed to meet the extended deadline.

“The board of directors of [Scomi Energy], after further deliberation, has decided to discontinue the regularisation plan which was announced on Jan 12, 2024,” said the troubled oil and gas services group on Wednesday, without disclosing the reason for the decision.

The regularisation plan announced in January involved a share consolidation, which would reduce the group's issued share capital from RM445.535 million to RM35,000 by cancelling RM445.5 million of its share capital, followed by consolidating every 20 existing shares into one consolidated share. Following this, the group proposed a private placement of 35.125 million new shares, representing 60% of its enlarged issued shares, at 22 sen per placement share to DMIA founder and executive director Datuk Seri Dr Subramaniam Pillai Sankaran Pillai.

The proposal also included accepting a RM140.03 million contract from DMIA for the construction and maintenance of the proposed upgrades to the Keretapi Tanah Melayu Bhd station and facilities under the Klang Valley Electrified Double Track Phase 2 project. This project was to be undertaken through the group’s wholly-owned subsidiary, Richfield Construction (M) Sdn Bhd. Additionally, the group proposed diversifying its business to include the construction sector.

Scomi Energy's previous regularisation plans had also encountered setbacks since the group entered PN17 status in January 2020, triggered by its consolidated shareholders' equity falling below 50% of its issued capital, which necessitated the submission of a regularisation plan.

The heads of agreement signed with Duta Marine Sdn Bhd in August 2023 was terminated in January this year due to the definitive agreement not being signed within the exclusivity period. The agreement included two options: Duta Marine potentially disposing of assets to Scomi Energy in exchange for shares and/or cash, or exploring other mutually agreed transactions.

Earlier, the planned reverse takeover of Scomi Energy, announced in October 2022, aimed at listing concessionaire PJD Link (M) Sdn Bhd on Bursa Malaysia via a reverse takeover of Scomi Energy, was terminated on July 17, 2023, without detailed explanation. This termination followed the Selangor state government's announcement of discontinuing the contentious Petaling Jaya Dispersal (PJD) Link project by PJD Link (M) ahead of the state polls in August 2023.

For the nine-month period ended March 31, 2024, Scomi Energy posted a net loss of RM1.08 million, compared with a net profit of RM26.55 million in the same period a year earlier.

The group's accumulated losses stood at RM473.38 million as of end-March.