Serba Dinamik FY19 earnings at new record high

This article first appeared in The Edge Financial Daily, on February 27, 2020.
Serba Dinamik FY19 earnings at new record high
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KUALA LUMPUR: 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 a revenue of RM4.53 billion.

The record high annual earnings were driven by a 26.9% growth in its quarterly net profit for the fourth quarter ended Dec 31, 2019 (4QFY19) to RM140.88 million from RM112.87 million for the year-ago quarter. Quarterly revenue increased 37.9% to RM1.36 billion from RM978 million for 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 an exchange filing yesterday, Serba Dinamik said its quarterly revenue improved mainly due to strong activities in its operation and maintenance (O&M) segment, supported by significant increases in its other products and services.

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

For the group’s others segment, which derives income from technical training, information, communications and technology 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.”