KUALA LUMPUR: Oil and gas price volatility will not have a long-term impact on Serba Dinamik Holdings Bhd’s operation and maintenance (O&M) activities.
Nevertheless, said its group managing director and chief executive director Datuk Dr Mohd Abdul Karim Abdullah, maintenance is still required as long as production activities are ongoing.
“Serba Dinamik is actively monitoring the situation in the Middle East and Malaysia with regard to our O&G (oil and gas) segment. As of now, operations are not affected,” he added today.
He said the company’s short to mid-term liquidity was also sufficient to ensure operations remained intact should the situation worsen.
Oil prices slumped to US$30 per barrel from US$60 on Monday, the lowest ever recorded since the Gulf War in 1991, following the Organisation of the Petroleum Exporting Countries (OPEC) and Russia’s failure to agree on output cut to bolster prices.
In the fourth quarter of its financial year ended Dec 31, 2019, Serba Dinamik’s O&M segment contributed 85.2% or RM1.16 bil to the group’s total revenue.
This represented an increase of 32.7% compared to RM873.32 mil a year earlier due to higher activities from the maintenance, repair and overhaul of rotating equipment activities in Qatar, United Arab Emirates, Bahrain and Malaysia.
Meanwhile, Abdul Karim said the company’s strategy in tapping into other geographical areas had been quite successful.
“Our focus is trying to reduce long-term reliance on the oil and gas sector,” he said.
On the impact of COVID-19 on Serba Dinamik’s operations, he said it was minimal.
Similarly, he said, the political situation in Malaysia does not have any impact on the company’s operations as its contracts are mostly based on commercial transactions.
Shares of the company closed flat today at RM1.85. – March 10, 2020, Bernama
