Serba Dinamik wins seven contracts worth RM831mil

The energy engineering solutions company said the proposed acquisition could open doors for it to secure up to RM560mil worth of engineering, procurement, construction and commissioning (EPCC) jobs, as well as earn dividend payments.

PETALING JAYA: Serba Dinamik Holdings Bhd has secured seven contracts totalling RM830.9mil from Malaysia and Indonesia.

In a filing with Bursa Malaysia, the company said it had received two contracts for engineering, procurement, construction and commissioning (EPCC) jobs and four operations and maintenance (O&M) contracts.

The group had also secured a new contract in Indonesia, awarded by Chevron for genset operations and maintenance in Kalimantan.

Group managing director and chief executive director Datuk Mohd Abdul Karim Abdullah said: “We are appreciative of the confidence received from our new clients with the award of these contracts.

“With these new projects, we are sure to be kept busy, and we believe that it will further strengthen our financial performance for the current financial year.”

Of the contracts secured by Serba Dinamik, two were awarded by Maju Renewable Energy Sdn Bhd, Maju RE (Talang) Sdn Bhd and Maju RE (Temenggor) Sdn Bhd to develop and maintain three power plants in Perak.

It will first provide EPCC development from April 2018 to March 2020, followed by maintenance services for the next 21 years from April 2020 to March 2041.

Notably, Serba Dinamik, which recently entered into a memorandum of agreement (MoA) to acquire a 40% stake in several subsidiaries held by Maju Holdings Sdn Bhd, said that it has been granted approval to develop hydropower plants with generating capacity totalling 60MW.

Serba Dinamik said the MoA would create an opportunity for it to be awarded with the EPCC contract for the power plants on a turnkey basis, which was valued at about RM560mil.

The other EPCC contract – awarded by Green & Smart Sdn Bhd – is to supply, design, fabricate, deliver, install, test and commission a 2.7MW-per-hour biogas power plant in Perak. The contract began on Feb 8 this year and is expected to be completed by Dec 7, 2018.

In a separate filing, Serba Dinamik said it was buying KB Engineering Coatings Sdn Bhd – a servicing and repairing of machinery and sale of spare parts company. Serba Dinamik said the acquisition – funded through proceeds from its initial public offering – is part of the company’s strategy to expand into asset ownership in line with its O&M business expansion plan.

KB Engineering was loss-making as at Aug 31, 2016. It recorded a net loss of RM111,127 and had net assets worth RM615,411.

“Moving forward, the proposed acquisition is expected to enhance the group’s financial position and profitability,” it said.

Shares in Serba Dinamik closed two sen lower at RM3.48 apiece.

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