KUALA LUMPUR (Feb 14): Serba Dinamik Holdings Bhd announced today its wholly-owned subsidiaries have secured a total of seven new contracts, worth a combined estimate of RM830.9 million.
In a filing with the stock exchange this afternoon, Serba Dinamik said six of its contracts are for Serba Dinamik Sdn Bhd (SDSB), and one for Serba Dinamik International Ltd (SDIL).
SDSB received two engineering, procurement, construction and commissioning (EPCC) contracts and four operations and maintenance (O&M) contracts; while SDIL's contract is on an O&M basis.
According to the filing, SDIL will be providing genset operation and maintenance services at Chevron Indonesia's Kalimantan operation. The contract started on Dec 4, 2017 and is due for completion on Nov 3, 2019.
Of the six contracts secured by SDSB, two were awarded by Maju Renewable Energy Sdn Bhd, Maju RE (Talang) Sdn Bhd and Maju RE (Temenggor) Sdn Bhd for the servicing of three power plants in Perak.
It will first provide EPCC development from April 2018 to March 2020, then maintenance services for the next 21 years, from April 2020 to March 2041.
The other EPCC contract — awarded by Green & Smart Sdn Bhd — is to supply, design, fabricate, deliver, install, test and commission a 2.7 megaWatt (mW) per hour biogas power plant in Perak. The contract began on Feb 8 this year and is expected to be completed by Dec 7, 2018.
SDSB will also provide price agreement for service, repair and overhaul of pumps and motors at Petronas Dagangan Bhd's terminals from Dec 20, 2017 until March 19, 2018.
Another contract on price agreement is for the rental of tools and equipment, supply of consumables and manpower for electrical and instrumentation for Asean Bintulu Fertilizer Sdn Bhd. The contract is for two years beginning Nov 28, 2017.
Lastly, SDSB also entered into a one-year term contract beginning Jan 15, 2018, for the provision of manpower and tools for mechanical (rotating) for planned and unplanned shutdown for Petronas Chemicals LDPE Sdn Bhd.
Serba Dinamik said the contracts secured are expected to contribute positively to the group's earnings, for the financial year ending Dec 31, 2018 (FY18).
In a separate filing today, 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 — at a total cash consideration of RM2 million.
For this, its wholly-owned Serba Dinamik Group Bhd has entered into a share sale agreement with KB Engineering's two sole shareholders, also directors, Hiew Chee Kong and Cheng Kean Fatt today.
KB Engineering was loss-making as at Aug 31, 2016. It recorded a net loss of RM111,127 and has net assets worth RM615,411.
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.
"Moving forward, the proposed acquisition is expected to enhance the group's financial position and profitability," read the filing.
To recap, earlier this month, Serba Dinamik also announced it is 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.
At the midday break, the counter slid one sen or 0.29% to settle at RM3.49 for a market capitalisation of RM5.13 billion.
The integrated engineering services group — which debuted on Bursa Malaysia's Main Market on Feb 8 last year — has seen its share price jump over 130% since, from its IPO price of RM1.50.