In a statement today, Serba Dinamik said the renewal, effective May 30, 2022, is for a one-year term.
The licence stipulates that Serba Dinamik shall, within one year from the effective date, submit its audited financial statements for the financial year-end June 30, 2022, duly accompanied by the auditor’s unqualified opinion.
“Also, Serba Dinamik is required to submit financial guarantees as a prerequisite for all and every Serba Dinamik’s participation in tenders initiated and/or conducted within one year from the effective date.
“Petronas will engage with Serba Dinamik on the details of financial guarantee requirements, in due course,” it said.
Serba Dinamik’s founder and CEO Abdul Karim Abdullah said the renewal would enable the company to reposition itself strongly on its financial aspects.
“This signifies Petronas’ vote of confidence in us. Given the circumstances and legal issues we have had in the past year, this renewal is very meaningful.
“We can continue to participate in various bids and continue to honour our existing contracts.”
He also mentioned that the company will adhere to the terms imposed by Petronas and will duly submit the necessary financial statements and guarantees.
Meanwhile, Serba Dinamik Holdings Bhd registered a revenue of RM205.5 million in the third quarter ended March 31, 2022 (Q3FY22), an increase of 6% from Q2FY22, attributed to activities in the operations and maintenance (O&M) segment, especially in the Middle East.
However, its bottomline was affected by higher operational costs, resulting in a loss of RM77.2 million, a slight improvement compared to Q2FY22 with a reduction of RM88.6 million, it said in a statement today.
It said O&M segment remained the largest contributor to its revenue in both Q3FY22 and Q2FY22 albeit a decrease in revenue as compared with Q1FY22.
“The decrease is mainly due to fewer activities in Qatar, United Arab Emirates (UAE) and Malaysia, hence resulting in a gross loss for Q3FY22 as compared to 53.4% gross profit in the immediate preceding quarter.
“This was attributable to maintenance, repair and overhaul (MRO) and inspection, repair and maintenance (IRM) activities, which is mainly due to fewer activities in Qatar, UAE and Malaysia which resulted in a gross loss for Q2FY22,” it said.
Serba Dinamik said its engineering, procurement, construction and commissioning (EPCC) segment contributed RM7 million or 3.4% of total revenue, which mainly derived from contracts in UAE, Tanzania and Malaysia.
Meanwhile, it said the information and communication technology (ICT) and education and training segments provided revenue of RM2.7 million and RM2.1 million respectively.
Geographically, it said the Middle East region was the highest contributor to revenue, providing RM131.6 million or 64% of total revenue for Q3FY22. Qatar contributed RM100.1 million and UAE RM30.6 million.
“Southeast Asia region contributed RM47.6 million or 23.2% as the second contributor. Malaysia contributed RM44.5 million and Indonesia RM3.1 million,” it said.
It said the Central and South Asia region provided revenue of RM21.5 million or 10.5%, which was mainly derived from Turkmenistan.
Meanwhile, it said the UK contributed RM4.8 million in revenue for the current quarter.
On the progress of the company, it said the board is looking to file an application to seek leave from the courts to convene its creditors’ meeting upon withdrawal of its application for judicial management.