SERBA DINAMIK Q2 NET PROFIT SOARS TO RM130.44 MLN

KUALA LUMPUR, Aug 22 --  Serba Dinamik Holdings Bhd's net profit jumped to RM130.44 million in the second quarter ended June 30, 2019 (Q2 2019) from RM102.74 million in the same period last year. 

Revenue surged to RM1.14 billion from RM804.13 million previously due to strong activities from its operations and maintenance (O&M) segment.

In a filing with Bursa Malaysia today, the integrated engineering services provider said O&M contributed 83.6 per cent of revenue in Q2 2019, with an increase of RM229.0 million or 31.7 per cent against Q2 2018. 

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"The increase was due to higher activities from our maintenance, repair and overhaul of rotating equipment activity in Malaysia, Indonesia and the Middle East region such as Qatar, the United Arab Emirates and Bahrain.

"However, the repair and maintenance activity showed a slight decline in Q2 2019 against the same quarter last year," it said.

Serba Dinamik said the O&M segment recorded an improved operating profit of RM168.7 million in the period under review, which represented a gross margin of 17.7 per cent.

On the engineering, procurement, construction and commissioning segment, the company said revenue rose by RM67.6 million year-on-year to RM147.2 million, and contributed 12.9 per cent of group revenue.

Meanwhile, other product and services registered revenue of RM39.8 million or 3.5 per cent of total revenue, it added.

For the first six months of the year, the company's net profit increased to RM242.59 million versus RM195.39 million in the same period last year, while revenue soared to RM2.12 billion from RM1.53 billion previously. 

Moving forward, Serba Dinamik believed that maintenance works were still required especially in the mid and downstream sector, despite the volatility in the market.

"Thus, the company has been actively engaging and participating in various bidding to capture more market in the maintenance space," it said.

-- BERNAMA