KUALA LUMPUR: Serba Dinamik Holdings Bhd is looking to improve its revenue by 15% to 20% for the financial year 2019 (FY19) in light of the bullish outlook for the oil and gas (O&G) sector.
Group CEO Datuk Dr M.A. Karim Abdullah said the energy services company hoped its revenue would hit the RM4bil mark in 2019.
Its FY18 results announced last month saw a 20.6% increase year-on-year in revenue to RM3.28bil.
“Our order book target for the year is RM10bil. It is currently at RM8.3bil. We believe RM10bil will be a good figure. (It is) achievable and will put the company on a good, strong foundation.
“We are still regarded as an O&G industrial player and I strongly believe the sector in the Malaysian context this year is bullish,” he said on the sidelines of Invest Malaysia 2019.
Karim added that Petronas’ announcement of a RM50bil capital expenditure would rejuvenate a lot of O&G activities.
He also expects oil prices to fluctuate between US$60 and US$70 per barrel, which is deemed as a “very good price” although some would say it is still way below US$100.
“O&G players have undergone rationalisation programmes, meaning that they have looked into cutting down costs so that the profitability is there even at the price of US$30 a barrel.
“Now that it’s almost double, you can see that the profit margins they are getting will be quite sizeable. In these kind of situations, they will have more money to invest and (this will help) rejuvenate the industry,” he said.
While O&G remains Serba Dinamik’s largest revenue contributor at 80% to 85%, Karim said the company would like to reduce its dependency on the sector and was looking at increasing its contribution from the power-generation industry.
He also revealed that the company is currently bidding for almost RM20bil worth of contracts globally, such as in Africa, the Middle East, Europe and Malaysia.
Serba Dinamik has a tender success rate of around 20% to 30%.
“Africa is a very lucrative region to look into. We have also entered into Central and South Asia, in countries like Kazakhstan, Uzbekistan Turkmenistan and India. These are all new markets where we have secured jobs,” he said.