This was due to disruption in progress during the Movement Control Order (MCO) following the COVID-19 pandemic which has caused global economic volatility.
Group managing director and group chief executive officer Datuk Mohd Abdul Karim Abdullah said however, the company is optimistic and confident of achieving the target as it has already executed plans to increase its non-oil and gas (O&G) revenue to about 70 per cent over the next three years, while reducing revenue dependency on the O&G sector to about 30 per cent.
Serba Dinamik’s entire orderbook currently stood at RM17 billion, of which 45 per cent comes from O&G, while 55 per cent are non-O&G.
“We are encouraged that economic activities are now in full swing. We have been working hard to ensure that our operations in Malaysia and in other parts of world, which are all operational, are well position to handle their respective challenges.
“Under the operations and maintenance (O&M) business segment for example, even though oil price collapses, the production platforms are still running.
“As a result, our contracts is still active and honoured and are utilised because equipment needs to be maintained to ensure that they are in good condition to carry out the necessary production required,” he said in his online interaction with the media on Thursday.
On the group’s engineering, procurement, construction and commissioning (EPCC) segment, Mohd Abdul Karim said 55 per cent of its orderbook in the segment now comes from non-O&G-related activity, which includes its Chlor Alkaline Plant in Tanzania that uses salt to make brine for chlorine production.
Besides EPCC, other non-O&G revenue contributor is expected to derive from its its hydropower plant in Kota Marudu, Sabah, an innovation hub development in Saudi Arabia, as well other integrated information technology solution-related projects, mainly on the Industrial Revolution 4.0 frontier.
He said the acquisition of University Malaysia of Computer Science & Engineering (UNIMY) earlier this year would also be one of the revenue contributor, where it is positioning the institution as a premier higher learning institution and expanding it globally soon.
Serba Dinamik recently undertook a private placement exercise, securing RM456.7 million on April 24,2020, with the aim of pairing down its debts with some financial institutions and providing working capital for existing projects.
Mohd Abdul Karim said the the exercise was also to ensure that the group is able to maintain and manage its strategic manner, while making sure that its trajectory of sales and revenue is achievable for 2020.
Affin Hwang Investment Bank, CIMB Investment Bank and Credit Suisse were the appointed bankers for the share placement exercise. – Bernama