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SERBADK (5279) SERBA DINAMIK HOLDINGS BHD subsidiaries secure US$114.3m worth of overseas contracts

KUALA LUMPUR (Dec 3): Serba Dinamik Holdings Bhd (SDHB) said today its subsidiaries had secured US$114.3 million (approximately RM465.9 million) worth of overseas contracts involving engineering, procurement, construction and commissioning (EPCC), operations and maintenance (O&M) and information, communication and technology (ICT) projects.

The contracts in Indonesia besides the United Arab Emirates and Republic of Guinea are expected to contribute positively to SDHB's earnings for financial year ending Dec 31, 2020, according to SDHB's Bursa Malaysia filing today.

Besides the five overseas contracts, SDHB said one of its subsidiaries had also secured four O&M contracts in Malaysia,
with no specific value attached.

"The contracts above have no specific value as the contracts are on a 'call-out' basis whereby the work orders will be awarded at the discretion of the client based on their activities' schedules and rates throughout the duration of the respective contracts," SDHB said.

SDHB said the duration of the overseas and Malaysia contracts is between September 2020 and November 2023.

Among the overseas contracts, SDHB said the Indonesia EPCC project, which involves a 4.8MW biogas-based power plant located in Aceh Tamiang within Aceh province, has started since Sept 1, 2020 and is scheduled for completion by Aug 31, 2021.

SDHB said the client for the project is PT Green Energy Specialist One.

Meanwhile, the Malaysia contracts were secured from oil and gas (O&G)-related companies including Sarawak Shell Bhd and JX Nippon Oil & Gas Exploration (M) Ltd, according to SDHB.

SDHB said the JX Nippon contract involves the provision of weather forecast services for the Nippon SK10 drilling operation.

According to SDHB, the contract, which began on Nov 4, 2020, is scheduled for completion by Nov 3, 2023.

In a separate statement today, SDHB group managing director and chief executive officer Datuk Dr Mohd Abdul Karim Abdullah said the projects that the group has secured not only strengthen its order book but also allow the group to conclude the financial year ending Dec 31, 2020 with great news and the certainty that it will maintain its financial performance for the year.

"The latest projects awarded also show our ability to source for business beyond the O&G industry, which has been affected by the slowdown due to the Covid-19 pandemic. Hence, we are aggressively expanding into EPCC jobs in non-O&G projects.

"Additionally, one of the ICT contracts that we recently secured enables us to set our foothold into Republic of Guinea.  Aligned with our future plans, we also will be focusing on expanding our ICT projects by utilising the latest cutting-edge digital technologies as we see a lot of opportunities in this specific industry," Mohd Abdul Karim said.

At Bursa's 12.30pm break today, SDHB's share price settled up one sen or 0.62% at RM1.63 for a market value of about RM5.49 billion.

The stock saw some 12 million shares traded.


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