Serba Dinamik sees more jobs in pipeline

KUALA LUMPUR: Oil and gas solutions provider Serba Dinamik Holdings Bhd, which made its debut on the Main Market of Bursa Malaysia with a 1.33% premium yesterday, is looking to secure more contracts this year, as it expects an increase in demand for its services given the recovery in crude oil prices.
The group is involved in operation and maintenance (O&M) business, as well as engineering procurement construction commissioning (EPCC) and provision of technical training, ICT solutions and supply of products and parts.
Serba Dinamik shares closed at a premium of 1.33% or 2 sen, over its issue price of RM1.50. Some 66.03 million shares were traded. The counter opened at RM1.53 with an intraday high and low of RM1.59 and RM1.51, respectively.
Speaking to reporters after the listing ceremony yesterday, Serba Dinamik managing director and CEO Datuk Ir Mohd Karim Abdullah said the group has up to now tendered for about RM5 billion worth of EPCC jobs in Pengerang, Johor.
Mohd Karim said the group was awaiting the outcome of its bids, which is expected to be revealed within the next six months.
“Theoretically I can say that more contracts are coming in. In Malaysia, as you can see in the last one week, oil and gas companies have been announcing awards being received.
“That shows that more contracts are available. At the moment, we are also bidding for quite a lot of tenders, which have been floating in the market ... in Malaysia as well as overseas,” he added, noting about 60% of its revenue is generated from its operations in the Middle East, while the rest is from local activities.
To date, Serba Dinamik has been awarded a sub contract work worth RM34 million from Petrofac E&C International Ltd, a UAE-based oil and gas facilities service provider, for the supply, fabrication and painting of structural steel.
It was reported that its order book size currently stood at RM2.5 billion, of which 70% is attributable to the O&M segment. Mohd Karim said its current order book would keep the group busy until 2019 to 2020. Commenting on its financial performance ended Dec 31, 2017 (FY17), Mohd Karim said he expects the stabilisation of oil prices and strengthening US dollar would help assist the group in achieving a higher bottom line.
For the first nine months of FY16, the group recorded a net profit of RM55.93 million, with a revenue of RM663.46 million.
Through the initial public offering (IPO), the group raised proceeds of RM407.1 million from the public issue of 271.4 million shares, which will mainly be used for its business and operational facilities expansion.