KUALA LUMPUR (Nov 21): Serba Dinamik Holdings Bhd’s net profit for the third quarter ended Sept 30, 2017 (3QFY17) rose 51% year-on-year to RM68 million, from RM45 million, on strong activities from its operation and maintenance (O&M), and its engineering, procurement, construction and commissioning (EPCC) segments.

Quarterly revenue grew 28% year-on-year to RM653.3 million from RM511.5 million, its note filed with Bursa Malaysia showed. Its board of directors declared a third-interim dividend of 1.5 sen per share in respect of the FY17, to be paid on Dec 20.

O&M contributed 86.9% or RM567.9 million to the group’s revenue. The segment’s quarterly operating profit came in at RM99.1 million. As for EPCC, segment revenue grew RM43.8 million to RM84.1 million and contributed 12.9% of Serba Dinamik’s quarterly revenue. The segment’s operating profit was RM13.5 million, yielding a gross margin of 15.9%.

“EPCC activity was mainly derived from the construction of water treatment plant in Terengganu, via our associate Konsortium Amanie JV Sdn Bhd, as well as from United Arab Emirates (UAE) through our contract with New Thunder Technical Services,” the filing said.

For the first nine months of FY17 (9MFY17), the group’s net profit jumped close to four times year-on-year to RM229.5 million, from RM58.6 million, as revenue climbed about three times to RM1.92 billion, from RM663.5 million in 9MFY16.

Moving forward, the board is optimistic about Serba Dinamik's future prospects and believes it will generate positive results for the rest of FY17.

“Recent announcement for the establishment of a chlor-alkali plant in Tanzania would mark as our first step into Africa and the company expects to further grow the business in the region,” the filing added.

Serba Dinamik’s share price fell by 0.75% to RM2.63 today, with about 2.5 million shares exchanging hands, giving it a market capitalization of RM3.56 billion.