Given that the oil and gas services provider has debts totalling about RM5 billion, suffered a net loss of RM1.1 billion in 2022, and is in the process of being wound up, Abdul Kadier’s statement does not seem to be mired in reality.
However, that’s exactly what he said in his message in the company’s long delayed annual Integrated Report 2021/2022 that was released today.
Abdul Kadier said the cover of its Integrated Report 2021/2022, which depicts “a phoenix taking flight, aptly describes our current state of affairs”.
“The phoenix is said to be an immortal bird from the Greek mythology which cyclically regenerates or is reborn again. It is a bird that never dies.
“We at Serba Dinamik believe that we too, will rise from any setbacks and come back stronger in the face of challenges, just like the phoenix,” said Abdul Kadier, who holds 605.12 million shares, or 16.2% of total shares, and 68.63 million warrants as of Dec 2, 2022.
He said Serba Dinamik has a strong foundation built on the vast experience of its management and staff in the oil and gas engineering industry.
“Companies succeed because of its people’s strength and we believe we have the essential resource – our people – who can deliver success to the company.”
He said that although Serba Dinamik suffered a net loss of RM1.1 billion in 2022, the company recorded a total revenue of RM1.35 billion for the financial year ended June 30, 2022.
The High Court on Tuesday granted a petition by six financial institutions to wind up Serba Dinamik and three subsidiaries over debts totalling about RM5 billion. Upon being wound up, the companies will be placed under a liquidator from PricewaterhouseCoopers (PwC).
Serba Dinamik’ board has since filed an appeal against the decision to wind up the company and its three subsidiaries. It has also instructed its solicitors to file an application to stay the court’s winding up order.
The Sarawak connection
Abdul Kadier has strong links to Sarawak. He joined the Sarawak Economic Development Corporation shortly after graduating with an economics degree from the University of Malaya in 1973, according to the company’s website.
In 1994, he was appointed as a director in Serba Dinamik and became a shareholder the same year. He is a member of the ruling Party Pesaka Bumiputera Bersatu (PBB) and sat as an exco member at the state level of the PBB Youth wing from 1985 to 1989.
He is also an active member of the Bumiputera Chamber of Commerce Sarawak (DUBS) and served as chairman for the Bintulu branch between 1986 and 1991. He is currently the vice-president of DUBS.
Interestingly, the Sarawak connection to Serba Dinamik is also evident in terms of its shareholdings. The State Financial Secretary of Sarawak is the second largest shareholder with 159.5 million shares while state-owned Bintulu Development Authority owns 21 million shares, according to its annual report released today.
The scale of the Sarawak government’s investment in Serba Dinamik has been criticised by DAP’s Bandar Kuching MP Dr Kelvin Yii, who urged the government to reveal the exposure and quantum of possible losses to the state treasury.
The DAP Youth chief claimed bodies linked to the Sarawak government owned about 30% of total shares of the company. He said the court’s decision to wind up Serba Dinamik and its units was “concerning” as the state government held significant shares in the company.
He also demanded to know the government’s plan to recoup the losses and ensure zero repeat of such scandals.
Turning around the company
Meanwhile, MD and group CEO Abdul Karim Abdullah said Serba Dinamik is formulating a plan to regularise its financial condition for submission to the relevant authorities in about a month.
“Turning around the company is by no means a simple task and the senior management team has invested a lot of our time and efforts throughout 2022 to ensure it will be achieved,” he said in the company’s Integrated Report 2021/2022.
Abdul Karim assured the group will be able to get back on track and continue to “rebuild itself to greater heights”.
“We are anticipating to resolve the statutory issues through a three-year programme, tracked with milestones.
“The process may seem to have taken a little longer than expected but we are confident we will see better times ahead,” he said.
On Jan 7, 2022, Serba Dinamik fell into the Practice Note 17 (PN17) category for financially distressed listed companies.
On Dec 23 last year, trading in the company’s shares were suspended until further notice for failure to submit its annual report 2022.