KUALA LUMPUR (Jan 15): Scomi Energy Services Bhd’s (SESB) (fundamental score: 2.35; valuation score: 2.4) oilfield services division has bagged RM300 million worth of contracts in the last three months to provide drilling fluids and drilling waste management services in Australia, Pakistan, India as well as West Africa.

“The clients for these contracts consist of both national and international oil companies,” it said in a statement today.

This brings the value of contracts secured by SESB in the last three months to RM475 million.

“The significant amount of contracts won in last three months provides us with a major boost to kick-start the new year. Our decision to adopt an asset-light strategy focusing on growing core business, expanding product lines and building integration capability has been well rewarded as evidenced by our continuous success in winning new contracts,” said SESB chief executive officer Shah Hakim Zain.

“Our strategy which has been put in place well before the oil price crisis set in has improved our resilience in the current tough market conditions. It has allowed us to remain competitive amid the uncertainty in the oil and gas sector.

“Consequently, we are able to remain active in the market by continuing to put in competitive bids for new contracts,” he added.

The group has also been actively introducing graphene-enhanced products and applications that include drilling and completion fluids, production chemicals,
EOR solutions, water treatment and well enhancement and stimulation.

These products have proven to be beneficial to our customers while having the advantage of being ‘green’,” said Shah Hakim.

As of 4.41pm, Scomi Energy shares were up 0.83% at 60.5 sen, giving it a market capitalisation of RM1.4 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)