Despite the Covid-19 challenges this year, Serba Dinamik has shown improvement in its performance for FY20 in comparison to FY19.
KUALA LUMPUR: Serba Dinamik Holdings Bhd (Serba Dinamik) delivered promising results for its fourth quarter ended December 31, 2020 (4QFY20), at RM1.82 billion for its revenue, a notable increase by 33.4 per cent as compared to RM1.36 billion posted in the preceding year’s corresponding quarter ended 31 December 2019 (4QFY19).
Subsequently, both profit before tax (PBT) and profit after tax (PAT) also showed notable improvement of 63.4 per cent and 44.1 per cent at RM227.32 million and RM202.10 million respectively, as compared to RM139.12 million and RM140.25 million for 4QFY19.
In a press statement, Serba Dinamik group managing director and group chief executive director Dato Dr Mohd Karim Abdullah expressed, “Despite the Covid-19 challenges this year, we are very grateful that the group has shown improvement from the top and bottom line for FY20 in comparison to FY19. We have succeeded to deliver strong performance from both our operations and maintenance (O&M) and engineering, procurement, construction and commissioning (EPCC).
“This is possible mainly due to commitment and focus on our core competencies as we continue to grow rapidly locally and internationally. Our ICT segment has performed significantly, where five main pillars were streamlined to include Cloud Computing/Data Centre, Financial Technology (FinTech), Artificial Intelligence (AI), Cybersecurity and Frontier Technology.
“The pillars signify our dedication to aggressively grow this segment to provide another non-O&G revenue stream. As we embrace digital transformation, we must capitalise on this opportunities and innovate new business models to create new income streams to stay sustainable”.
Karim added, “Earlier this year we have secured 11 projects in Malaysia, Indonesia and India. These contracts give us a good momentum to start 2021, we strive to give full effort and commitment to continuously obtain good performance as we are confident that the Group will deliver promising results for financial year ending 2021”.
During the quarter under review, the improvement in revenue continued to be driven by the group’s largest contributor, the O&M segment, which contributed approximately 82.5 per cent at RM1.50 billion to the group’s total revenue, recording an increase of 29.2 per cent as compared to RM1.16 billion recorded in 4QFY19. This was mainly due to higher volumes from the maintenance, repair and overhaul of rotating equipment (MRO) activities in the Middle East region and Malaysia.
Meanwhile, the group’s EPCC segment contributed 11.2 per cent or RM203.03 million to the total revenue for 4QFY20, showing a significant increase of 41.1 per cent as compared to RM143.93 million recorded for 4QFY19. The segment was mainly derived from our various contracts in UAE, Turkmenistan and Malaysia.
The group’s ICT segment has shown significant growth with contribution of approximately 6.2 per cent or RM113.01 million of the total revenue, an increase of 99.7 per cent as compared to RM56.59 million in 4QFY19. This is the outcome of the Group’s boldness to aggressively expand its operation in ICT activities worldwide. Apart from contribution of the existing contracts which are mainly customised solutions in software developments, the amplification was largely contributed by contracts in UAE and Qatar for services relating to the Extended Reality (XR) training applications.
Geographically, Malaysia continued to be the largest contributing country with 37.9 per cent at RM688.70 million to the total revenue for 4QFY20. The South East Asia region in which Malaysia is included, has contributed RM732.24 million or 40.3 per cent to the revenue for 4QFY20.
The Middle East Region contributed RM1.01 billion or 55.8 per cent to the company’s total revenue. The remaining contribution came from Central & South Asia region at RM59.06 million or 3.3 per cent, Africa region at RM8.32 million or 0.5 per cent and finally Europe at RM 3.68 million or 0.2 per cent.
For FY20, the group registered a total revenue of RM6.01 billion, showing a significant increase of 32.8 per cent as compared to RM4.53 billion recorded for FY19. Concomitantly, both PBT and PAT for FY20 posted 29.6 per cent and 26.9 per cent improvement at RM706.34 million and RM632.10 million as compared to RM544.83 million and RM497.98 million for FY19, correspondingly.
For FY20, the board of directors has declared a fourth interim single-tier tax-exempt dividend of 1.60 sen per ordinary share, to be paid on March 30, 2021.