KUALA LUMPUR: Global integrated engineering solutions provider Serba Dinamik Holdings Bhd has lowered its growth target to 10%-15% for this year for both the top and bottom lines compared with previous year’s growth of 15%-20%.
This is due to the disruption in progress during the Movement Control Order (MCO) period following the Covid-19 pandemic, said group managing director and group CEO Datuk Mohd Abdul Karim Abdullah.
However, the company is confident of achieving the target as it has already executed plans to increase its non-oil and gas (O&G) revenue to about 70% over the next three years while reducing revenue dependency on the O&G sector to about 30%.
Serba Dinamik’s entire order book currently stands at RM17 bil, of which 45% comes from O&G.
“We are encouraged that economic activities are now in full swing. We have been working hard to ensure that our operations in Malaysia and in other parts of the world, which are all operational, are well-positioned to handle their respective challenges.
“In the operations and maintenance (O&M) business segment, for example, even though the oil price has collapsed, the production platforms are still running.
“As a result, our contracts are still active and honoured and are utilised because equipment need to be maintained to ensure that they are in good condition to carry out the necessary production required,” he said in his online interaction with the media today.
On the group’s engineering, procurement, construction and commissioning (EPCC) segment, Mohd Abdul Karim said 55% of its order book in the segment now comes from non-O&G-related activity, which includes its Chlor Alkaline Plant in Tanzania that uses salt to make brine for chlorine production.
Besides EPCC, another non-O&G revenue contributors are expected from its hydropower plant in Kota Marudu, Sabah, an innovation hub development in Saudi Arabia, as well other integrated information technology solution-related projects, mainly on the Industrial Revolution 4.0 frontier.
He said the acquisition of University Malaysia of Computer Science & Engineering (UNIMY) earlier this year would also be one of the revenue contributors, where it is positioning the institution as a premier higher learning institution and expanding it globally soon.
Serba Dinamik recently undertook a private placement exercise, securing RM456.7 mil on April 24, to pare down its debts with some financial institutions and provide working capital for existing projects.
Mohd Abdul Karim said the exercise was also to ensure that the group is able to maintain and manage its strategies while making sure that its trajectory of sales and revenue is achievable for 2020. – May 14, 2020, Bernama
