Serba Dinamik FY19 earnings at new record high

Serba Dinamik FY19 earnings at new record high
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KUALA LUMPUR (Feb 26): Serba Dinamik Holdings Bhd turned in another set of record high earnings in the financial year ended Dec 31, 2019 (FY19). Its annual net profit soared to RM496.64 million on revenue of RM4.53 billion.

The record high annual earnings was driven by 26.9% growth in its quarterly net profit in its fourth quarter ended Dec 31, 2019 (4QFY19) to RM140.88 million from RM112.87 million in the year-ago quarter. Quarterly revenue increased 37.9% to RM1.36 billion from RM978 million in 4QFY18, on improvements across all three of its main segments.

Serba Dinamik declared a fourth interim single-tier dividend of 1.4 sen for FY19 payable on March 30, bringing total dividends for the year to 7.51 sen per share.

In its exchange filing today, Serba Dinamik said its quarterly revenue improved mainly due to strong activities from its operation and maintenance (O&M) segment, supported by significant increase in its other products and services.

Besides the O&M segment which showed a 36.4% jump in operating profit during the quarter under review, the engineering, procurement, construction and commissioning (EPCC) segment too achieved 32.8% growth thanks to its chlor-alkali plant in Tanzania and activity with Petronas Carigali Sdn Bhd in Malaysia.

For the group’s other segments, which derives income from technical training, information, communication and technology (ICT) solutions and supply of products and parts, operating profit jumped from RM199,000 to RM9.83 million.

Serba Dinamik said it will continue to strengthen its position in the Middle East and Southeast Asia going forward, besides other new areas of growth.

“The group’s recent announcement of 12 new contracts in Malaysia, Indonesia and Oman showcase our commitment to further enhance our presence in these two regions.

“Also, in 2019 the group managed to secure three new contracts in Central Asia, and the group expects to secure more new contracts as Central Asia has been viewed as the next region for growth under the group. The group is also committed to expand their presence in Africa and in the American region to enable the group to be a reputable global player in the O&M and EPCC space,” it added.

Shares in Serba Dinamik closed one sen lower today at RM2.34, for a market capitalisation of RM7.22 billion.