By BERNAMA / Pic By ARIF KARTONO
OIL and gas (O&G) price volatility will not have a long-term impact on Serba Dinamik Holdings Bhd’s operation and maintenance (O&M) activities.
Nevertheless, its group MD and CEO Datuk Dr Mohd Abdul Karim Abdullah (picture) said maintenance is still required as long as productions are ongoing. “Serba Dinamik is actively monitoring the situation in the Middle East and Malaysia with regard to our O&M segment. As of now, operations are not affected,” he told Bernama yesterday.
He said the company’s short-to mid-term liquidity is sufficient to ensure operations remained intact should the situation worsen.
Oil prices slumped to US$30 (RM126) per barrel from US$60 on Monday, the lowest ever recorded since the Gulf War in 1991, following OPEC and Russia’s failure to agree on output cut to bolster prices.
In the fourth quarter of financial year ended Dec 31, 2019, Serba Dinamik’s O&M segment contributed 85.2% or RM1.16 billion to the group’s total revenue.
This represented an increase of 32.7% compared to RM873.32 million a year earlier due to higher activities from the maintenance, repair and overhaul of rotating equipment activities in Qatar, the United Arab Emirates, Bahrain and Malaysia.
Meanwhile, Mohd Abdul Karim said the company’s strategy on tapping into other geographical presence had been quite successful.
“Our focus is trying to reduce long-term reliance on the O&G 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.
Prime Minister Tan Sri Muhyiddin Yassin on Monday unveiled his Cabinet line-up of 31 ministers.
Shares of the company closed flat at RM1.85. — Bernama