Friday, May 28, 2010
Sime Darby's losses reach RM1.3 billion
The provisions for losses incurred by Sime Darby Berhad's Energy and Utilities Division have now been raised to RM1.3 billion.
Announcing the company's third quarter results for Financial Year 2009/2010, its acting Group Chief Executive Datuk Azhar Abdul Hamid said the figure was not a final one.
The excerpts of the Press Statement issued yesterday:
PROVISIONS OF RM964 MILLION IN THE ENERGY & UTILITIES DIVISION
The Energy & Utilities division had reported an operating loss of RM1,019 million in the first nine months of the year. This was after recording provisions for the oil & gas and engineering sub-segment in 3QFY2010 amounting to RM964 million that was announced on 13 May 2010.
The breakdown in the provisions totaling RM964 million is as follows:
RM200 million for the Qatar Petroleum (QP) project;
RM159 million for the Maersk Oil Qatar (MOQ) project;
RM155 million for the Marine project;
RM450 million for the Bakun project;
Inclusive of the above provisions, the total provision for the four projects at the end of the third quarter amounted to RM1.3 billion. These provisions are based on the current best judgment of the forecast cost to completion of each of the projects. The QP project was completed and handed over in August 2009. The MOQ project is expected to be completed by the end of the year. Negotiations on cost recovery in all four projects are ongoing.
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