SIME Darby : Cost Overruns

Sime Darby announced that it will recognize RM964m in losses due to cost overruns related to the following projects:-

a) Qatar Petroleum Project
b) Maersk Oil Qatar project
c) Vessel Construction for the Maersk Project
d) Bakun dam.

Effect
1)A knock on 2H Earnings
2)CEO Zubir on leave of absense
3)Victim of 'diworsification"?

Rating :
Maintain Sell with TP of RM6.95