The group is also looking to reduce its reliance on O&G-based revenue, which currently represents 76% of its earnings
By NUR HANANI AZMAN / Pic TMR
SERBA Dinamik Holdings Bhd aims to increase revenue contribution from its non-oil and gas (O&G) segment to 55% in the next couple of years from 24% at the moment.
Group MD and CEO Datuk Dr Mohd Abdul Karim Abdullah (picture) said the group is also looking to reduce its reliance on O&G-based revenue, which currently represents 76% of its earnings, and prepare the group for other emerging alternative energies that could replace oil.
“Serba Dinamik’s latest projects worth US$114.3 million (RM465.9 million) show our ability to source for business beyond the O&G industry, which has been affected by the slowdown due to the Covid-19 pandemic.
“With those contracts secured, Serba Dinamik’s current orderbook is now lifted to RM18.7 billion,”hetoldTheMalaysianReserve.
The integrated engineering solution provider’s subsidiaries have secured a total of nine contracts, involving six in operations and maintenance (O&M); one in engineering, procurement, construction and commissioning (EPCC), and two in ICT projects.
Its wholly-owned subsidiaries, Serba Dinamik International Ltd and SDIT International Ltd, and a 75%-owned subsidiary, PT Serba Dinamik Indonesia, secured five overseas contracts in Indonesia, the United Arab Emirates and Republic of Guinea.
Another subsidiary, Serba Dinamik Sdn Bhd, also secured four O&M contracts in Malaysia, with no specific value as the contracts are on a “call-out” basis.
The work orders will be awarded at the discretion of the client based on their activities’ schedules and rates throughout the duration of the respective contracts.
Mohd Abdul Karim said the projects not only strengthen its orderbook, but also allow the group to conclude this financial year ending Dec 31, 2020, with great news and the certainty that it will maintain its financial performance for the year.
“We are aggressively expanding into EPCC jobs in non-O&G projects. Additionally, one of the ICT contracts that we recently secured enables us to set our foothold into the Republic of Guinea.
“Aligned with our future plans, we will also be focusing on expanding our ICT projects by utilising the latest cutting-edge digital technologies as we see a lot of opportunities in this specific industry,” he added.
The duration of the overseas and Malaysian contracts is between September 2020 and November 2023.
Among the overseas contracts is the Indonesia EPCC project, which involves a 4.8MW biogas-based power plant located in Aceh Tamiang within Aceh province, which has started since Sept 1, 2020.
Scheduled for completion by Aug 31, 2021, the client for the project is PT Green Energy Specialist One.
Meanwhile, the Malaysia O&M contracts are from Sarawak Shell Bhd and JX Nippon Oil & Gas Exploration (M) Ltd and BASF Petronas Chemicals Sdn Bhd.