The company is to far gone for a new CEO to make the slightest of difference.
All Shah has done is line his pockets alone with all the other directors etc etc for as long as the company could support it.
The rats are deserting the sinking ship.......

Eagerly awaiting Q4 financials.....

With Q4 results out shortly i can see this plummeting trend continuing.......

More doom and gloom....

https://www.offshoreenergytoday.com/octanex-in-talks-to-exit-ophir-field/

I would agree with cash flow issues or poss redundancy packages for Scomi EN clear-out?? but the treasury share sales are of such a small amount??? only 60K (USD) for the last four sales..... if that is cash flow issues then there are serious problems - Are they meeting payroll this month???

Some additional points raised from the Octanex report.
During the short production phase prior to the well being shut in was that it was observed that there was much higher than predicted gas production and much lower than anticipated oil levels..

The issues at Scomies......

Ophir oilfield has been unable to restore production
The field was shut in on 8 January to address facilities constraints identified during commissioning, a power fault prevented a production restart.
Nitrogen lifting operations began in late March on the first well Ophir A-1 to restore production, the nitrogen operations were unsuccessful in restarting production.
JV owners are discussing the next steps for the field with Petronas.

Long story short.... There is no oil revenue coming in from Ophir.
This will seriously impact Q4 results as everything was hanging on to Ophir revenue

Q4 results was never going to look good but with additional overheads and an even bigger loss/reduction in revenue..... I really cant see how this counter can show any means of climbing up from where it is now.
Ophir was all it had going for it and that it would seem is dying a death too.
It might look like a cheap buy but there is a good reason for that! buying cheap and still loosing???? personally i would just wait for the Q4 results to come out and then reassess the situation.
If you are sitting on stock it might just be time to sell up and accept the losses as they are now and not waiting to be stung even harder after Q4 results...

The total cost of investment of SVPL is USD100 - I don't think there was that much of a financial strain on SES from it but it might just be a sign of bigger things in the pipe line.....

Seems to be the rallying in the wrong direction!!!

Weak but still trading..... 0.095 going into the weekend??

Scomi….. like an impotent old man..
Fails to get it up….

longvalley .......0.095 b come reality........!!!!?????

i_investor - Not sure that 40K USD will make to much difference, would think there is another reason for the sale????

Ongjimmy - What is your reasoning??

From my point of view there are good reasons for the recent price and performance to be so low.
Dropped revenue, increased overheads, increased loans and bank repayments, no new work, poor publicity, failure to complete and deliver projects, lost court cases, more court cases coming and fines imposed...... That and they have not been in the black since 2015, QOQ and YOY increased losses, reduction in value of assets, the list goes on and there doesn't seem to be anything in there that has a positive spin on it.

So other than shear volume of shares been bought at a ridiculously low price what is going to push the price up to nearly double what it is standing at at the moment?

Hi Nippy65, nope i do not think so and i think he is just there as a puppet to some degree, maybe to reduce the possible direct involvement of Shah or perceived conflict of interests??? but i do think there will be more changes coming shortly.

Scomi Energy appoints new CEO.....

Scomi Energy appoints new CEO, first of many changes coming soon......

Let face it there a good few reasons to go down the consolidation route.
One would be Combining companies that have differing strengths and build off them while potentially reducing some of the overheads, increasing the market share and presence and lots of other good stuff that makes for a new stronger company and that’s only if the implementation is well structured and managed correctly…
And then there is basic survival of a failing company…..
The fundamentals are – Scomi Group and Scomi engineering have a bit of a problem, they are both huge loss makers, revenue if falling, overheads are increasing, there is no new work and as for the monorail…. well that has single handed killed off Scomi engineering all by its self and its issues are still on the increase
Scomi group needed SCOMI ENERGY as it is the only real potential out of the three to bring in some much needed cash – Ophir
Unfortunately for scomi group ES opted out and they are now left with a bigger problem than they started with - bigger overheads, bigger debts and more issues coming with the monorail - international arbitration, court and fines have already been imposed since the start of this year and we all know where this will end don’t we.
So in my humble opinion, the share prices will dance a little along with the general market fluctuations but unless the basic fundamentals change there is only one way they can go!!!

Personally I believe that next qtr results will see the end of this company forever..

I see NOSH has been reduced too........

Not sure what IJM could do at this stage - sell their stake and run like crazy????
Market cap just hit 200 million
69 Million less than Scomi ES!!!

Another week like this and some pocket change could secure yourself as a major stake holder....

CT888 - Not sure good is what i would say...... More like, luckily it wasn't worse than it was

Knowing the true value of what is actually returned to ES from oil production in the form of revenue will be the bench mark and one that is desperately needed, way to much speculation of the figures over the last 12 months, millions here and millions there with exaggerated production figures etc etc.
To write off asset for 50 mil?? we would need to know the underlying factors, it might just be that in the long run it would have been more expensive to retain them and if you are more specifically looking for better figures for next Qtr, remove then, remove the costs associated with them if they have to go better do it now than show in the next Qtr and anything that comes in from oil production will look so much better.
Pointless showing additional revenue from oil and then having to cancel it all out with an asset write-off, i think for this next one coming they are desperately looking at making a bit of an impression - i am sure that there will be other operating costs/overheads reductions etc without any further write-offs and things will be drastically reduced to make Ophir look like a spectacular success....
All good stuff but should have been done years ago!!

The Qtr report makes for an interesting read - scary but interesting....
Net worth has dropped off 223 Million that's -30% against the same time last year.

There was nothing to indicate anything other than a poor result, was speculating @ -25 to -30 but -63 is pretty horrendous.
Market cap in now hovering between 220/240 and still looking at a southerly direction.

Usual trend is for Scomi to pick-up slightly towards the end of the month......
But this is a short month!!!! that and conso is working hard to push prices down which is also the usual trend after that type of exercise.
Qtr results will not be any surprises i dont think as there has been no new work and only doom and gloom for the last 2x qtr, will be another loss making qtr and just adding to the debts and reducing the market Cap even further..
Lets see what tomorrow brings.....

Scomi group crashing...

Huge volume.
All time low and still pushing hard in a downward direction, the market cap = 266 Million - Ouch Ouch Ouch
What is the warrant price???

Scomi Group net debt position currently = 300+ Million, Market Cap 280 Million and Revenue is lower than operating costs

Any thoughts Nippy65???

Curious to see but Scomi ES is now sitting with a slightly higher Market Cap than Scomi.....

12 month low and another 10 days before the qty results out.......
Plenty of sellers but no buyers
Dropped off 20% in ten days!!!!...another -10% will see all time lows
Not looking good.......


"nippy65 With the additional shares swap from Scomien couple with the turmoil and nervousness in world maket and absence of new jobs, more pressure will be on the share price which prehaps can go below 0.20. As good as capital reduction.
09/02/2018 09:10"

Down 13% in a morning session is a little scary!!!
Prices will blip on the 15th which will suit the two week traders...
15th to the 24th will be a tough time and hard to sell.

24th onward??? maybe a little resurgence for the month end but will be a steady sell-off and i see all time low looming very close.

Volume down.... Waiting on Scomi?????
15th-24th will be telling time.

Sorry - I made a mistake there.
Total loans and current liabilities are sitting at 514M

Last x4 qtrs Rev = 671M

Assets = inventory / trade and receivables = 495M and of that 143M is up for sale.

If you dont have the assets and the rev =/- the liabilities that and the COS remains the same its time to close the doors, they are perilously close to that mark now.

Rev = 152M, cost of sales -129M + all other operating costs = NP -20M for Q3
Net worth is dropping by approx. 50M QOQ
Assets have dropped by 100M in the last Qtr
Loans sitting at 46M

Cost of a new vessel may be the same but an old one sitting idle will still depreciate and if it is none revenue generating, forecasting is a great thing but realization and securities against it are another.

If there are no new assets and the current assets continue to devalue (As they do) or are written-off that and falling revenue the net worth will also continue to fall.
Banks don't like that.... especially looking at the track record for the last few years and when you are betting with their money???? will not be long before they will want more than just the loan serviced.

Impairment of asset, was that not just Q1?? which pushed it up to -76 million.
Depreciation of assets and equipment still goes on which lowers the net worth
whats not to say there will be more write-offs and impairment of asset????
Unfortunately when there are so many negative figures around there is no Profit and it is only additional revenue, we are looking at a company with many facets not just a one off operation...

Current revenue is way below operating costs and that's not including any loans and other costs etc etc
Other than Ophir there has been no additional revenue, i believe it has dropped even further than Q3
The operating costs should not have changed, loans, costs and idle assets are still there and as far as i know have not changed either.

Am i right in saying from their financial statements that NP for Q1 Q2 and Q3 2018 = -115 Million.
So lets add -20 (At a guess) for Q4 = -135 million
How does that sit with potential revenue from Ophir?

Freeman, the price of the sale is not profit - cost of recovery and production, storage, transport and an awful lot of other things come in to it, at current prices what you are left with is about 18-20 bucks a Bbl, Scomi would then get their 30% of that as revenue, its not going to cover their current operating costs and losses let alone cover any other services.
Also don't forget that ES has group sitting with 65%..

Yep new jobs is what is needed, and by the looks of all the statements that is into RE.
problem is Scomi don't have a single foot hold in RE other than a JV???

Mukhnizam statement - Scomi will be redeploying employees, following its shift into new businesses such as the RE move.
In terms of staff layoffs, Scomi will mitigate the number of terminations, but the firm will not extend project- based contracts.

In other words they are going to be laying off a heap of staff and currenty have no new work.....
Do they have the money to lay the staff off??? maybe why they are going to sell off some assets...

As at Sept 30 last year, Scomi Group stood in a net debt position of RM673.7mil, while Scomi Engineering has a net debt of RM473.6mil.
In the first half of financial year 2018, it posted a wider net loss of RM42.17mil.
Scomi Engineering is also in the red, with an increased net loss of RM31.28mil

Next qtr in a few weeks and i cant see it turning that around nor will selling off a few assets make that much of an impact with the growing losses

All very doom and gloom!

52 week low (pre consol price) by the end of the week???

Got to agree with Nippy65.

I think a slow decline until Friday, will hold steady early next week.....
Uptrend after the 13th and then the Qty results will be in the following week....... big sell-off and some panicking as the realization sets in.

Scomi will make some announcements about how they are selling of assets and making investments in renewable again and they are tendering in some massive projects and the future is all looking rosy....

A resemblance to a capital reduction??? not sure but something smells not quite right about the whole thing.....
The group aims to pare down its debt with cash from its operations - selling off assets, no new work and falling revenue with increased overheads and costs...
not sure how it is going to use cash from operations when it is running in the negative?????

Something is brewing and i think more of a brown lining.

Capital reduction???
Funds retained in the capital of a company to be returned to its shareholders??? not sure that would ever happen, But If there were a big sell-off after the qty and then the company did a big buy up there are various scenarios that would be extremely beneficiary to the large stock holders (And you know who they are)!!
Allowing a payment of dividends might just be one of them???? this would be very nice for the big holders especially after a big buy up.
Allowing the company to use its capital to buy back Directors shares, again very nice option.
Can all go under the disguise of a capital reduction i guess

All of the above will not have any impact on you or I but those at the top would be sitting very pretty.

Voluntary winding up????
Also make sense for the directors, reduce the debt, reduce the costs and overheads sell off the assets and go down the voluntary route, leaves the directors and major share holders 12 months to collect what ever is left over???

Just my cynical thoughts... it will be an interesting few months that is for sure....

Just to add to that.... the current max production is estimated at 5 million barrel per annum
The FPSO has a max 15,000 barrels of fluid per day = 5.4 million barrel per annum if it were to operate at max capacity 365 days a year....
So everything is currently shut down via electrical issues and not started back up production yet.
So lets give a best guess of production cap being on the high side of 4.5 million barrel per annum

BIGAPETITE let's do some calculation:
ophir oilfield production of oil on average 8 million barrel per annum and given market price of USD68 /barrel

estimated realized revenue : 8,000,000@USD68/barrel=USD544,000,000.00

scomi energy have 30% stake in ophir which translates into USD544 million @ 30% = USD163 Million @ exchange rate rm4.00/usd a whopping RM652,000,000.00 in revenue

Now deduct.....
Cost of recovery, operating costs, tax, storage and transport
Then deduct.....
ES operating cost, overheads, loans, taxes etc etc etc all that good stuff that shows in the Qty reports as massive losses.

Then i believe that Scomi still have a 65% stake in ES???? so they will want a cut of the bottom line if there is anything left..

There will be a ramping up period in production so pretty sure there will not be an 8 million barrel per annum to begin with.
Revenue comes after the operating period not before.
The money isnt in the bank yet........

A bit of a poor result at the voting polls....... was only to be expected i guess and ES were not really in the running to stand alone.
Will the new entity be able to survive long enough to make any difference to the losses, lack of work and failing business?????
Whats next????? Watch the share prices bounce up and down for a while and wait for the Q3 results.

No benefit to Energy what so ever and will only make things worse.

But looking at Group and Engineering the only chance of survival for them is to bring in the only potential and that is Orphir.....I see absolutely nothing else in the bag or on the immediate horizon for the other two that will stop them going under.

Can you really see the top management closing the doors on Group and En and putting themselves out of a job for the sake of the survival of Energy????

What will happen after the merger takes place??? Lay off 66% of middle management, operations, finance, HR and logistics etc etc etc and desperately try and cut down on the overheads and operating costs, reduce the requirement for offices, fixed assets and the likes????
Do they have the capability to lay off so many staff as this would-be redundancy and is going to be an expensive course of action????

Either that or bring them all together, break away a few potentially profitable elements (sell-off or rename but keeping key elements / directors around in the background???) and allow the rest to Judicial Management or Corporate Voluntary Arrangement. These are desperate times and anything is possible.

Just my thought but I don’t see how all three can possible survive together or apart.
Any thoughts on other potential solutions??? This is a great forum for discussion as there are so many much closer to the real action than mere passing investors.

They need to completely restructure their entire business….. But to do so I think they still have to complete the merger, concentrating on Orphir and building from it and to close or ditch the likes of the monorail with-out hurting will be extremely difficult.
To many overheads and fingers in none revenue/profit generating pies has killed this outfit, that and the top-heavy corporate structure sucking up funds.

Q1 and Q2 results didn’t and has not shown the full story!
The prospect of losing its entire bank guarantee of Rs 250 crore in India??? Daily/weekly and monthly fines that are not being paid?? Not supplying the new carriages and replacing the one that set its self on fire all have major ramifications, More court cases and fines coming, investigation to potential fraud for substandard chemicals being supplied, the list goes on and on and I am sure there is a lot more that we don’t know about and none of this is reflected in the reports….
Falling revenue, late payments, increasing overheads, loans being defaulted and late payment of salaries all looks like the company is in a death spiral to me….

Orphir cannot cover the operating costs of EN as is let alone the other two entities, time to cut loose and lighten the load.
All needs to be done before Q3 release otherwise its good night Vienna……
Something radical must be done and sharpish.

Extraordinary General Meeting on 04-Jan-2018 (I really like the fact that this is being held at Bukit Kiara Equestrian & Country Resort, a real cost cutting exercise there then!!!)
https://cdn1.i3investor.com/my/files/dfgs88n/2017/12/11/1507058259--1500601485.pdf

So keeping an eye on the current share values and their current southerly direction, do you? – buy-in and or keep your shares for voting rights??? Try and make your vote count but bearing in mind who holds the bulk of the shares and knowing already which direction that they will be voting in, Cash out and watch from the side-lines?????

Which way will you vote?????

SCOMI GROUP an SCOMI ENERGY ready to hit 52 week low this week???

All three counters hitting 1 month low and still falling....

Crashing??

More doom and gloom...

http://www.dnaindia.com/business/report-dna-exclusive-monorail-co-lt-scomi-may-lose-rs-250-cr-guarantees-2565863

All three groups heading into free fall...?