KUALA LUMPUR (Sept 3): Scomi Group Bhd has submitted a Practice Note 17 (PN17) waiver application to Bursa Malaysia today.

Scomi said the company had triggered the PN17 criteria as its shareholders' equity spread was less than 25% of its issued share capital and the equity dropped below RM40 million, based on its financial results for the quarter ended June 30, 2019.

Scomi incurred a loss of RM250.5 million for the quarter, with its losses in the oilfield services segment rising by RM20.7 million compared with a year ago, mainly due to a lower gross profit and higher operating expenses.

Its corporate segment included loss on net effect of deconsolidation of subsidiaries of RM184.4 million and related adjustments of RM38 million as a result of the deconsolidation. Additionally, there was also an RM8.7 million impairment of investment in jointly-controlled entities during the period.

Scomi recently changed its financial year end to June 30, from March 31 previously.

Following the results announcement on Aug 30, Scomi's external auditors Messrs KPMG PLT had expressed material uncertainty relating to the going concern of the company.

For the financial year ended March 31, 2019 (FY19), Scomi managed to narrow its losses by 72.4% to RM43.95 million from RM159.39 million in the previous year, while revenue stayed flat at RM132.07 million against RM132.32 million.

Scomi shares were trading down one sen or 11.76% at 7.5 sen at 4.20pm. Year to date, the counter has gained by some 33%.