KUALA LUMPUR: Oil and gas services company Serba Dinamik Bhd's net profit rose by 35.9% to RM113.16mil in the third quarter ended Sept 30,2019 from RM83.22mil a year ago, underpinned by the strong operation and maintenance (O&M) business.
It announced on Monday its revenue increased by 35.7% to to RM1.045bil from RM770.22mil a year ago. Earnings per share were 7.71 sen compared with 5.67 sen. It declared an interim dividend of 1.11 sen a share.
Serba Dinamik said the higher revenue was due to strong activities from the O&M. Profit before tax rose 41.5% to RM137.38mil from RM97.11mil.
Elaborating on the results, it said O&M reported a 32.6% increase in revenue to RM925.77mil and operating profit rose by 34.4% to RM161.62mil.
“O&M contributed 88.6% of revenue in 3QFY19 with an increase of RM227.6mil or 32.6% against 3QFY18. The increase was due to higher activities from our MRO (maintenance, repair and overhaul of rotating equipment) activity in Middle East region such as Qatar, UAE & Kuwait, and Malaysia.
“IRM activity also showed higher growth against 3QFY18. The segment recorded an improved operating profit of RM161.6mil which represents a gross margin of 17.5%.
Revenue from the engineering, procurement, construction and commissioning (EPCC) rose by 54.3% to RM106.68mil and operating profit by 45.4% to RM16.22mil.
“EPCC contributed 10.2% of the total revenue of the group. Increased revenue from EPCC segment was mainly derived from our chlor-alkali plant in Tanzania and activity with New Thunder in UAE. The segment recorded an operating profit of RM16.2 million yielding a gross margin of 15.2%, ” it said.
Other product and services recorded revenue of RM12.6mil or 1.2% of the total revenue. This was mainly derived from the provision of IT related services which relating to customised solutions involving software developments in countries such as Qatar and India.
For the nine months ended Sept 30, its net profit rose by 27.7% to RM355.76mil from RM278.61mil in the previous corresponding period. Its revenue increased by 37.4% to RM3.168bil from RM2.305bil.
Serba Dinamik said operating profit was RM555.9mil or 17.5% of total revenue. This was an improvement from a year ago with 37.4% and 38.3% for revenue and operating profit respectively.
O&M have shown an increase in revenue of 33.1% mainly from Middle East region, Malaysia as well as Indonesia. O&M operating profit also showed an increase of 35.2% from a year ago.
EPCC and other product & services also showed an increase in revenue of RM122mil and RM59.9mil or 50.2% and 870.5% respectively. The operating profit for both business segments also improved by RM16.4mil and RM10.4mil or 41.9% and 545.4% increase from a year ago, it said.
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