KUALA LUMPUR: Serba Dinamik Holdings Bhd’s net profit increased 19.2 per cent to RM133.72 million in the first quarter (Q1) ended March 31, 2020 from RM112.15 million recorded in the same quarter last year.
Its revenue surged 29.9 per cent to RM1.28 billion from RM984.39 million, due to strong activities from operation and maintenance (O&M) segment.
Serba Dinamik said O&M had contributed 86.8 per cent to total revenue, at RM250.9 million or 29.2 per cent higher than Q1 2019.
This was due to higher activities from its MRO activity in Middle East region such as United Arab Emirates, Qatar and Oman,as well as Malaysia.
Serba Dinamik said inspection, repair and maintenance (IRM) activity had also showed higher growth against Q1 2019.
The segment recorded an improved operating profit of RM202.5 million which represents a gross margin of 18.2 per cent.
The group’s engineering, procurement, construction and commissioning (EPCC) revenue recorded a total of RM140.7 million, increased by RM29.5 million against Q1 2019, contributing 11.0 per cent to the total revenue.
Increased revenue from EPCC segment was mainly derived from our chlor-alkali plant in Tanzania and activity with Petronas Carigali Sdn Bhd in Malaysia.
The segment recorded an operating profit of RM21.7 million yielding a gross margin of 15.5 per cent.
Serba Dinamik group managing director and chief executive officer Datuk Dr Ir Mohd Karim Abdullah said the group’s O&M and EPCC segments continued to show strong results and moving forward.
He said the company would continue to expand these segments.
It will also put more emphasis on information and communications technology (ICT) segment which not only had doubled its contribution to revenue as compared to Q1 2019, but showed great potential for the future.
In Q1, Serba Dinamik’s ICT segment registered revenue of RM27.9 million or 2.2 per cent of the total revenue.
This was mainly derived from the provision of IT related services related to customise solutions involving software developments in countries such as Qatar.
Serba Dinamik declared an interim single tier dividend of 1.2 sen per share, to be paid on June 26.
Karim said despite the challenging economic environment, the group had mitigated through its strength in maintenance in which existing contracts are still being honoured and drawdown since the asset’s production are still running.
“Incorporating the value-added features with Artificial Intelligence, its predictive maintenance has gained better respect from customers.
“Added integrated solutions such as high-end repair capability in the group’s global centre of excellence will help to secure more new contracts both locally and globally,” he said.