KUALA LUMPUR (May 22): Serba Dinamik Holdings Bhd posted a stronger net profit in its first quarter of the financial year 2018 (1QFY18) — in tandem with higher revenue — and declared a first interim dividend of 1.9 sen per share in respect of FY18.
The global integrated engineering services provider's net profit for the 1QFY18 ended March 31, 2018 grew 18.2% year-on-year to RM92.65 million from RM78.33 million. This pushed its earnings per share higher to 6.51 sen from 6.43 sen. Revenue was up 19.3% y-o-y to RM730.83 million from RM612.42 million.
In a statement today, the group said the higher revenue was due to stronger contribution from its operations and maintenance (O&M) segment, which comprised about 86.8% of the group's 1QFY18 revenue. O&M's topline was mainly derived from more inspection, repair and maintenance activities in the Middle East, and the recently secured contract in Turkmenistan.
Revenue in its engineering, procurement, construction and commissioning (EPCC) segment, which contributed 12.9% to group revenue, came mainly from an increase in domestic activities, including the group's hydro power plant in Kota Marudu, Sabah, and the contract it secured with New Thunder Technical Services in United Arab Emirates (UAE).
On the dividend declared, Serba Dinamik said it will be paid on June 29. The entitlement date is June 13.
Group managing director Datuk Dr Mohd Abdul Karim Abdullah said Serba Dinamik's 1QFY18 results has brought the group closer to its internal expectations for the year 2018.
"We are proud that Malaysia, the root of Serba Dinamik, remains the single largest contributing country to our topline of 27.46% of the total revenue for 1QFY18.
"Our overseas businesses are also bullish, which has increased revenue contribution by 4.19% for 1QFY18 as compared against 1QFY17. Moving forward, we will continue to strive to ensure that all undertaken projects secured domestically or internationally are solely based on our expertise, knowledge and capabilities at Serba Dinamik," he added.
Serba Dinamik shares closed up 9 sen (2.8%) today to RM3.31 and for a market capitalisation of RM4.9 billion.