Why SCOMI share actively traded recently?

Recently SCOMI share has been traded actively and the price also moved up a few cents. The reason was finally announced on Thursday, there have hit a 'jackpot' in Qatar, there won a multi-million dollar contract there.

The following news was extracted from btimes.com.my.

Scomi bags Qatar Petroleum contract


RM130m deal, over three years, will boost firm’s drilling fluids business in the Middle East

SCOMI Group Bhd has secured a RM130 million contract from Qatar's state-owned petroleum company Qatar Petroleum, in a move that will boost its drilling fluids business in the Middle East region.

The contract, which is to supply drilling fluids and engineering services over three years, was awarded to Scomi Oiltools (Cayman) Ltd's branch in the Middle Eastern country.

Scomi Oiltools is part of the group's oilfield services business.

Scomi, in a press statement yesterday, said the contract was a "milestone" for its drilling fluids business in the Middle East.

Scomi's share price nudged up by about two per cent (or half a sen) to 26 sen in the stock market yesterday. A day earlier, however, it rose by 13.3 per cent on heavy volumes.

Scomi Oiltools will be required to formulate solutions for challenging drilling environments onshore as well as provide drilling fluids services for four rigs initially, with more rigs anticipated towards the end of the year.

It competed against major players in the field to win the contract, it said, without naming the rivals.

"With our vast experience in drilling fluids formulations for challenging environments, we are confident of formulating effective yet cost-effective solutions for our customer," Wan Ruzlan, president of the market units for Scomi Oiltools, said.

Scomi has had operations in the Middle East since 1998 and has so far provided its drilling fluids services and products in Egypt, Saudi Arabia and Sudan.

"The eastern hemisphere is the major growth region for us with the Middle East having great potential for expansion," Wan Ruzlan said.

Its major clients in the region include Saudi Aramco, PDO, Adco, WNPOC, Gupco and Petrobel.

Scomi's drilling fluids operations are supported by the group's Global and Technology Centre in Malaysia.

From this centre, research and engineering, technical services and training reaches out to all its global operations.