KUALA LUMPUR (June 12): Serba Dinamik Holdings Bhd has inked a RM320 million deal with Petroliam Nasional Bhd (Petronas) to acquire the Teluk Ramunia fabrication yard in Johor.
The asset comprises four adjoining parcels of industrial land totalling 68.78 hectares. Erected on the land are warehouses, workshops, fabrication yard and other ancillary buildings.
The yard has the capacity to perform steel fabrication of offshore platforms and other structures of up to 50,000 tonnes.
Petronas had bought the yard for RM296 million in 2011 from Sime Darby Engineering Sdn Bhd, just a year after the latter had paid RM530 million to acquire the asset from Ramunia Holdings Bhd.
In a statement today, Serba Dinamik said its unit Serba Dinamik Group Bhd has agreed to buy the asset from Petronas Asset Sdn Bhd, a wholly-owned subsidiary of Petronas.
Serba Dinamik group managing director and chief executive director Datuk Mohd Karim Abdullah said the deal would allow the group to further expand its capabilities.
“These facilities will assist in enabling various contract securements, therefore, strengthening both our onshore and offshore activities and further improving our value chain in maintenance and engineering, procurement, construction and commissioning (EPCC) jobs.
“We find that there are plenty of opportunities in which we can expand our EPCC capabilities, and these opportunities lie not only in Malaysia, but across the region and Middle East as well,” he said.
Established in 1993, Serba Dinamik, through its subsidiaries, provides engineering solutions servicing to the oil and gas and power generation industries with operations in Malaysia, Indonesia, United Arab Emirates, Bahrain and the UK.
The group posted a higher net profit of RM133.60 million for the first quarter ended March 31, 2020 , up 18.9% from RM112.37 million a year earlier, as all its business segments registered growth.
Quarterly revenue rose 29.9% to RM1.27 billion from RM984.38 million, due to higher call-out works under its operation and maintenance business, as well as higher EPCC activities.
Despite the sharp plunge in oil prices in recent months, Serba Dinamik said its existing contracts are still being drawn down and honoured as oil production is still running.
The counter closed one sen or 0.56% lower at RM1.76 today with 1.23 million shares exchanging hands. This valued the group at RM5.97 billion.