However, the oil and gas services provider’s quarterly revenue dropped by 40.3% to RM105.80 million from RM177.14 million a year ago.
For its first six months of FY2023, its net loss was 41.56% lower at RM194.27 million compared with RM332.44 million a year earlier. The company’s cumulative revenue declined 67.3% to RM319.38 million from RM976.49 million a year earlier.
In its filing with Bursa Malaysia today, the group attributed the fall in revenue to the reduction in activities in all segments. Its engineering, procurement, construction and commissioning (EPCC) division, a core business segment, posted zero revenue in Q2 FY2023.
As at Dec 31, 2022, the group’s total loans and borrowings amounted to RM3.61 billion, of which RM2.83 billion was short-term borrowings, while receivables remained high at RM1.48 billion versus RM1.58 billion a year ago.
On geographical segmentation, the Middle East region continued to be the highest revenue contributor for the group. The region contributed 64% of overall revenue for the quarter or RM67.7 million, with revenue mainly from Qatar and followed by UAE, the company said.
Central and South Asia was the second major contributor to revenue, recording a total revenue of RM25 million from its activities in Turkmenistan.
Revenue in Southeast Asia dropped significantly due to a significant reduction in operation and maintenance (O&M) activities in Malaysia and consequently a reduction in revenue by 76.2%.
Serba Dinamik expects to increase its clients base as vendor for original equipment manufacturers due to the establishment of its integrated facilities especially in Bintulu, Sarawak, and Pengerang and Pasir Gudang in Johor, which will focus on oil & gas and power generation industries.
Restructuring and regularisation plan
The group is currently working on improving its financial position through a series of streamlining activities that will form a part of its regularisation plan.
With the group being classified as a PN17 company, the board pledged to resolve the ongoing issue, including the restructuring and regularisation plan, in the best interests of stakeholders.
“This will improve the company’s position moving forward and will assist in easing the financial difficulties that it is facing,” the filing added.
The board anticipates that operations will “remain challenging going into 2023” due to the uncertainty of the global economy. However, the O&M segment will remain its core competency and be fundamental to its operations.
Winding up proceedings
In January, the High Court issued a winding up order against Serba Dinamik and three subsidiaries – Serba Dinamik Sdn Bhd, Serba Dinamik International Ltd and Serba Dinamik Group Bhd.
The four companies are seeking a permanent stay pending the hearing of their appeal at the Court of Appeal against the winding-up order.
The winding up proceedings by Standard Chartered Saadiq Bhd, HSBC Amanah, AmBank Islamic Bhd, MIDF Amanah Investment Bank Bhd, United Overseas Bank (Malaysia) Bhd and Bank Islam Malaysia Bhd are over the non-payment of loans amounting to RM1.7 billion out of a total sum of some RM5 billion owed by the group.
Serba Dinamik’s share price was unchanged at two sen today, giving it a market capitalisation of RM75.54 million.