SERBA DINAMIK NET PROFIT SOARS TO RM631.7 MLN IN FY20

KUALA LUMPUR, Feb 26  -- Serba Dinamik Holdings Bhd's net profit jumped to RM631.74 million for the financial year ended Dec 31, 2020 (FY20), from RM496.64 million recorded in FY19.

Revenue rose to RM6.01 billion from RM4.53 billion previously, it said in a filing to Bursa Malaysia.

It said the operations and maintenance (O&M) segment contributed RM5.04 billion to revenue in FY20, accounting for 83.9 per cent of group revenue, which was mainly derived from works performed in Malaysia, Oman, Qatar, and United Arab Emirates (UAE).

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O&M gross profit stood at RM899.4 million for FY20 while revenue and gross profit from the engineering, procurement, construction and commissioning (EPCC) segment recorded RM590.9 million and RM87.6 million respectively, which was mainly contributed from contracts in Malaysia, Turkmenistan and the UAE.

Activities from both information, communication and technology (ICT) and education and training (E&T) business segments have shown growth of more than 100 per cent where revenue increased to RM376.0 million and RM3.6 million respectively.

The gross profit for both business segments also improved by RM43.9 million and RM0.8 million respectively against the preceding year.

In a separate statement, group managing director and group chief executive director Datuk Mohd Karim Abdullah said despite the COVID-19 challenges, the Group had shown improvement in its top and bottom lines for FY20 compared with FY19.

"We have succeeded to deliver strong performance from both our O&M and EPCC. This is possible mainly due to commitment and focus on our core competencies as we continue to grow rapidly locally and internationally." 

He said the ICT segment had performed well whereby five main pillars were streamlined to include cloud computing/data centre, financial technology, artificial intelligence, cybersecurity and frontier technology.

"The pillars signify our dedication to aggressively grow this segment to provide another non-oil and gas revenue stream. As we embrace digital transformation, we must capitalise on these opportunities and innovate new business models to create new income streams to stay sustainable”.

For the fourth quarter (Q4), Serba Dinamik reported a higher net profit of RM202.15 million compared with RM140.88 million in the same period in FY19.

Revenue rose to RM1.82 billion in Q4 FY20 from RM1.36 billion in Q4 FY19. The improvement in revenue in Q4 FY20 was driven by the group’s O&M segment.

Meanwhile, Mohd Karim said the company had secured 11 projects in Malaysia, Indonesia and India so far this year.

“These contracts give us the momentum to start 2021, and we will strive to give full effort and commitment to continuously obtain good performance as we are confident that the group will deliver promising results for the financial year ending 2021,” he said.

-- BERNAMA