This article first appeared in The Edge Financial Daily on February 15, 2018

KUALA LUMPUR: Serba Dinamik Holdings Bhd announced yesterday that it has secured seven new contracts worth a combined estimate of RM830.9 million via its wholly owned subsidiaries.

In a filing with the stock exchange, Serba Dinamik said six of the contracts were secured via Serba Dinamik Sdn Bhd (SDSB), and one via Serba Dinamik International Ltd (SDIL).

The new contracts are expected to contribute positively to the group’s earnings for the financial year ending Dec 31, 2018.

Under SDSB, it has been awarded two engineering, procurement, construction and commissioning (EPCC) contracts, and four operations and maintenance (O&M) contracts.

Specifically, it secured two contracts — an EPCC for three power plants in Perak and an O&M on the same plants — from Maju Renewable Energy Sdn Bhd, Maju RE (Talang) Sdn Bhd, and Maju RE (Temenggor) Sdn Bhd. The EPCC will commence from April 2018 and be completed by March 2020, after which the O&M contract will kick in for 21 years from April 2020 to March 2041.

The other EPCC job it secured was from Green & Smart Sdn Bhd, in relation to a 2.7MW per hour biogas power plant in Perak. The contract began on Feb 8 this year and is expected to be completed by Dec 7.

The remaining three O&M contracts were separately secured from Asean Bintulu Fertiliser Sdn Bhd, Petronas Dagangan Bhd (PetDag) and Petronas Chemicals LDPE Sdn Bhd.

With Asean Bintulu Fertiliser, SDSB has a price agreement for the rental of tools and equipment, and supply consumables and manpower for electrical and instrumentation for the company. This is a two-year contract which began on Nov 28, 2017.

With PetDag, SDSB has a price agreement for the service, repair and overhaul of pumps and motors at PetDag’s terminals from Dec 20, 2017 to March 19.

As for Petronas Chemicals LDPE, SDSB will provide “manpower and tools for mechanical [rotating] for the planned and unplanned shutdowns of Petronas Chemicals LDPE”. The agreement is for one year, which began on Jan 15.

As for SDIL’s sole contract, an O&M, it will be providing genset O&M services at Chevron Indonesia’s Kalimantan operation. The contract started on Dec 4, 2017 and is due for completion on Nov 3, 2019.

Separately, Serba Dinamik said it is acquiring KB Engineering Coatings Sdn Bhd — a company that does servicing and repairing of machinery and sale of spare parts — for RM2 million.

KB Engineering Coatings was loss-making as at Aug 31, 2016. It recorded a net loss of RM111,127 and has net assets worth RM615,411.

“Going forward, the proposed acquisition is expected to enhance the group’s financial position and profitability,” Serba Dinamik said.

Serba Dinamik said the acquisition — funded through proceeds from its initial public offering (IPO)  — is part of the group’s strategy to expand into asset ownership in line with its O&M business expansion plan.

To recap, earlier this month, Serba Dinamik announced it was acquiring a 40% stake in Maju Renewable Energy, Maju RE (Talang) and Maju RE (Temenggor) from Maju Holdings Sdn Bhd — which are controlled by businessman Tan Sri Abu Sahid Mohamed — for a combined RM24.85 million.

Listed on Feb 8 last year, the integrated engineering services group’s shares have jumped some 130% from its IPO price of RM1.50 apiece.