Update on Scomi Group

Last May 2006, I wrote the following posting: Regarding Scomi

• So let's look at how did Scomi do since its listing...
  
  For its fiscal year 2003, Scomi Group announced an earnings of 14 million.
  For its fiscal year 2004, Scomi Group announced an earnings of 61.4 million.
  For its fiscal year 2005, Scomi Group announced an earnings of 151.692 million.
  
  And there you have it mate, yes it is true that Scomi has an astonishing growth rate!
  
  But how about them points again? Well, as at its last reported earnings...
  
  Cash is at 87.595 million.
  Trade receivables has increased to 438.430 million.
  Group's borrowings is not at 918.363 million.
  
  And yes, I do understand your issue that leverage can be used to generate a much higher revenue but on the other hand, I do hope you realise that this leverage issue is a matter of personal views and opinions. Me, for one, believe that too much leverage can turn deadly if one is not prudent enough.

Scomi group announced its earnings last night. Now I will add in Scomi latest earnings to my comments in bold blue.

For its fiscal year 2003, Scomi Group announced an earnings of 14 million.
For its fiscal year 2004, Scomi Group announced an earnings of 61.4 million.
For its fiscal year 2005, Scomi Group announced an earnings of 151.692 million.
For its fiscal year 2006, Scomi Group announced an earnings of 84.545 million.

( And its fiscal year 2006 earnings is achieved on the back of its sales revenue increasing from 1.067 BILLION to 1.575 BILLION. WOW! Incredible. Despite an increase of its sales revenue by as much as 500 million, its earnings fell from 151 million to 84.545 million!!)

Let's compare some key balance sheet items mentioned before. New comments in bold blue.

Cash is at 87.595 million. (Cash now is at 301.518 million.)
Trade receivables has increased to 438.430 million. (Trade receivable is now at 497.968 million.)
Group's borrowings is not at 918.363 million. (Group borrowings is now at 1.330 BILLION!!)

WOW!!!

Incredible isn't it.

Last fiscal year, Scomi Group was at a net debt position of 830.768 million. A year later, Scomi Group is now at a ned debt position of 1.028 BILLION.

WOW!