Serba Dinamik upbeat on growing order book to RM7.5 billion by year-end
SHAH ALAM (14 May 2018): Oil and gas (O&G) engineering firm Serba Dinamik Holdings Bhd expects to grow its order book from the existing RM6.2 billion to RM7.5 billion by the end of the year.
Figure 1: A photo of Group Chief Executive Officer/Group Managing Director of Serba Dinamik, Dato Dr. Ir. Mohd Abdul Karim Abdullah (right) and Datu Dr. Haji Sanib Bin Haji Said (left).
Group managing director and chief executive officer Datuk Mohd Abdul Karim Abdullah said it was in discussions with multiple entities across the markets that it is already present in.
“Right now, we are already present in Southeast Asia, Central and South Asia, the Middle East, Europe as well as Africa by way of Tanzania. We are expecting more orders from the markets that we are already in given our strong track record,” he told NST Business after its annual general meeting today.
In terms of revenue contribution to the group which had grown at 26 per cent to RM2.72 billion for the year ended December 31 2017, the Middle East contributed the biggest chunk at 59 per cent. This is followed by Southeast Asia (35.6 per cent), Malaysia (31.7 per cent), Central and South Asia (5.16 per cent) and Europe (0.16 per cent). Africa has yet to contribute as the group only entered Tanzania in early 2018.
“We do see the Middle East contributions to slightly decrease as we have been gaining a lot of work from Central Asia,” Abdul Karim said.
As part of its business diversification, Serba Dinamik is venturing into information and communication technology (ICT) solutions.
“Although the ICT business might come across as something new to others, it is not to us given that we have already been creating and designing our own ICT solutions through our operations and maintenance (O&M), engineering procurement construction and comissioning (EPCC) segments,” he said.
“We are adding value to what we are offering in these two segments as our solutions will enable our clients to keep track of the health of their equipments. These solutions could also help them forecast potential issues and take action.”
The company allocated a capital expenditure of RM20 million for the ICT segment, with some RM5 million having already deployed.
Serba Dinamik earlier this month secured a US$20 million Islamic finance facility with Japanese entity Mizuho Bank (M) Bhd.
“The agreement with Mizuho is not just for us to leverage on the Japanese bank’s network and Japanese manufacturers, but for us to also secure facility for our Tanzania market which we believe will be able to finalize sometime in the third quarter,” said Abdul Karim said.
It expects to announce multiple power generation contracts in the domestic and international market.[Source: “Serba Dinamik upbeat on growing order book to RM7.5 billion by year-end” published by New Straits Times/New Straits Times Press (M) Berhad]