In a filing with Bursa Malaysia today, the company attributed this mainly due to impairment of trade receivables amounting to RM865 million arising from the projects it was unable to fulfil.

The oil and gas services group, which has been lossmaking for seven straight quarters, had recorded a RM89.67 million net loss in Q2 FY2023.

Quarterly revenue slumped 97% to RM6.18 million from RM205.48 million a year earlier, due to lower contribution from all business divisions.

Revenue from its operations and maintenance (O&M) segment tumbled 97.42% to RM5 million from RM193.74 million, while engineering, procurement, construction and commissioning (EPCC) recorded a 92.24% drop in revenue to RM544,000 from RM7.01 million.

The information and communications technology segment’s revenue fell to RM241,000 from RM2.69 million while education and training’s revenue decreased to RM389,000 from RM2.05 million.

The group anticipates its operations will remain challenging this year due to uncertainty in the global economy as well as the current challenges it is facing from a liquidity perspective.

“The group views that the O&M segment will remain its core competency and provide the fundamentals of its operations.

“With the group being classified as a Practice Note 17 (PN17) company, the board pledges to resolve the ongoing issue, including the restructuring and regularisation plan, in the best interests of stakeholders,” it added.

Serba Dinamik slipped under the PN17 classification in January last year, after its external auditor expressed a disclaimer of opinion on its audited financial statements for the 18-month financial period ended June 30, 2021.

As at end-March, its borrowings stood at RM3.72 billion against RM36.45 million in cash.