Scomi completes consolidation move

KUALA LUMPUR: Scomi Group Bhd yesterday completed the consolidation of all its oil and gas businesses under one entity, Scomi Energy Services Bhd (SESB).

The exercise, which started on February 29 last year, involved the disposal of Scomi Oilfield Ltd, Scomi Sosma Sdn Bhd and Scomi KMC Sdn Bhd by the group to SESB.

It also involved an internal restructuring of legal entities within the oilfield services (OFS) for OFS Eastern Hemisphere business to fall under SESB, also a capital repayment within SESB to its shareholders.

Scomi said the exercise has enabled its shareholders to participate in a more diversified oil and gas business with greater growth potential.

"More importantly, the group has financially restructured and pared down debts and further strengthened its balance sheet substantially," Scomi said in a statement.

The group's total borrowings have been reduced from RM1.9 billion in 2008 to just RM1 billion, most of which are short-term and operational funding at various subsidiaries.