KUALA LUMPUR (Feb 25): Scomi Group Bhd saw its net profit for the third financial quarter ended Dec 31, 2015 (3QFY16) fall 38.5% to RM5.71 million or 0.37 sen a share, from RM9.3 million or 0.6 sen a share a year ago, mainly due to lower drilling activities in Malaysia, Indonesia, Myanmar and West Africa and higher financing cost.

Revenue fell 22.8% to RM373.95 million, from RM484.56 million in 3QFY15.

For the cumulative nine months period (9MFY16), the group’s net profit fell 23% to RM20.46 million, from RM26.55 million in 9MFY15, impacted by lower profit operations, as well as higher financing cost.

Revenue was lower by 19.9% to RM1.09 billion, from RM1.36 billion in 9MFY15.

In a statement today, Scomi said revenue of RM324 million from the group’s energy division was in line with management’s expectations.

“Oilfield division will continue to face challenging operating environment for the remainder of FY16. We will continue to exercise prudence that involves cost and cash flow management.

“The continuous reduction in our operating expenses is the result of this initiative by the management,” said its chief financial officer Muknizam Mahmud in a statement today.

Going forward, the management said with the continued challenges globally and volatile currency movements, the group is cautious about the current financial year.

The stock closed up 2.56% at 20 sen today, with 11.13 million shares traded today. Scomi Group is trading at a trailing P/E ratio of 7.93 and 0.5 times the book value.