KUALA LUMPUR: Scomi Energy Services Bhd has bagged a RM175.4 million contract from TNB Fuel Services Sdn Bhd (TNBF), a wholly-owned subsidiary of Tenaga Nasional Bhd, to carry bulk coal.

In a statement yesterday, Scomi Energy said it had received a letter of award from TNBF for a contract of affreightment for carrying bulk coal. The contract is for a period of two years commencing from May 1 this year, with an option for TNBF to extend it for another year. 

The contract is valued at RM175.4 million for the full three-year duration.

Under the contract, Scomi Energy is expected to transport approximately 1.2 million tonnes of coal per year. 

Scomi Energy chief executive officer Shah Hakim Zain said this was the second contract win for the company. 

“The growth in the bulk carrier segment of Scomi Energy’s business will provide the company with recurring revenue that will help us weather the current challenging landscape in the oil and gas (O&G) business,” he said. 

“The combination of growing contribution from the marine logistics business and our active bidding for O&G contracts will provide us with a strong footing to meet the challenging business environment. 

“Our strategy to adopt an asset-light business model also helps us mitigate the impact of sliding oil prices,” he added. 

Scomi Energy shares ended one sen or 1.79% higher at 57 sen yesterday, giving it a market capitalisation of RM1.33 billion.

This article first appeared in The Edge Financial Daily, on January 8, 2015.