GLOBAL integrated oil & gas (O&G) service provider Serba Dinamik Holdings Bhd posted a net loss of RM290.33 mil for its 2Q FY6/2022 ended December 31, 2021.
Group revenue stood for the period under review stood at RM177.1 mil. There was no comparison available given Serba Dinamik has changed its financial year end from Dec 31 to June 30 on May 7 last year.
For the 1H FY6/2022 period, Serba Dinamik’s net loss totalled RM332.44 mil while its revenue stood at RM976.49 mil.
In detailing its financial performance, Serba Dinamik said its operations and maintenance (O&M) segment was the largest contributor to the group’s revenue at RM141.8 mil or 80%.
This was attributed to maintenance, repair and overhaul (MRO) and inspection, repair and maintenance (IRM) activities which were mainly contributed by operations in the Middle East region such as Qatar and United Arab Emirates (UAE) followed by Malaysia.
The group’s engineering, procurement, construction and commissioning (EPCC) segment was the second biggest contributor with RM30.4 mil or 17.2% of total revenue which were mainly derived from contracts in UAE, Tanzania, and Malaysia.
Its information and communication technology and education and training segments provided a revenue of RM2.7 mil and RM2.3 mil respectively.
Geographically, the Middle East region was the largest contributor to revenue, bagging RM90.6 mil or 51.1% of total revenue for 2Q, mainly derived from Qatar and UAE worth RM58.8 mil and RM30.6 mil respectively.
The Southeast Asia region was the second biggest revenue contributor with RM64 mil or 36.1% with Malaysia and Indonesia both contributing RM44.1 mil and RM19.9 mil respectively.
This was followed by the Central and South Asia region with RM9.9 mil or 5.6% (derived mainly from Turkmenistan) while elsewhere, Tanzania and UK contributed RM9.2 mil and RM3.5 mil respectively to the current quarter’s revenue.
Commenting on its 2Q FY6/2022 performance, Serba Dinamik’s group managing director and CEO Datuk Dr Mohd Abdul Karim Abdullah said the big drop in crude oil futures prices for two consecutive months since November had contributed to market volatility in addition to rising uncertainty from the Omicron impact on the global economy and future oil demand.
“However, due to recent geopolitical tension and resilient oil demand, the consensus has raised their crude oil price forecast from US$75/barrel to US$80/barrel and this re-rating catalyst could benefit the group’s operations in the O&M and EPCC segments,” projected Abdul Karim.
With all resolutions passed during the company’s annual general meeting (AGM) held on Jan 31, Abdul Karim said shareholders’ still have trust in the company despite the group being classified as a Practice Note 17 (PN17) listed issuer.
“The board is confident that the restructuring and regularisation plan will benefit shareholders in the long run. At this juncture, the board has enlisted the assistance of the court’s judiciary management,” he added.
Serba Dinamik was last transacted at 35 sen at the close of the mid-day trading on Oct 22 last year prior to the trading suspension of its shares/warrants, hence giving the company a market capitalisation of RM1.3 bil. – Feb 28, 2022
