KUALA LUMPUR: Amidst global uncertainty due to the Covid-19 pandemic that had led to lockdowns and controlled movements worldwide, Serba Dinamik Holdings Bhd is optimistic on its projections, particularly its RM7.71 billion project in Abu Dhabi.
Its group chief executive officer Datuk Mohd Abdul Karim Abdullah said the project, backed by a strong network of suppliers, consultants and contractors to support the job, would further strengthen the company’s position in the Middle East.
“We have been operating in the region since 2001 and been successful since then,” he said in an email interview today.
He stressed that this project is diversification to reduce dependency on oil and gas revenue and does not deviate from its core competencies as Serba Dinamik is highly competitive in engineering, procurement and construction (EPC) as well as IT-frontier technology.
In fact, with more than 18 years financial records showed zero bad debts declaration speaks of the carefulness of the company in terms of debt collection.
Therefore, Karim said there should be no concerns that this project would be non-performing as claimed by industry’s observers and analysts because he himself as a founder initiated and support it.
Despite the current lockdown, it is business as usual for the international energy services provider which has been categorised under ‘essential services’.
“We have not seen our operations significantly affected by the current situation,” said Karim.
Meanwhile, he said the Abu Dhabi contract secured on April 15, required of Serba Dinamik to develop three areas — an innovation hub which comprises offices, restaurants, exhibition centres, and IT centres; an academic campus; and accommodation comprising apartments and hotels.
The total build-up space spans 455,000m2.
On the company’s financial ability to finance the project, Karim said it was sufficient to cover current requirements.
“We always monitor our current gearing ratio to ensure that we are in line with market expectations,” he said.
As of now, Serba Dinamik is already sitting on an order book worth RM10 billion from various projects that have been secured.
On the risks of the project, Karim said the company would have to pay a 10 per cent penalty should it miss the completion deadline in four years, as is the standard market practice.
“The company also seeks to limit any risk through constant communication with the relevant authorities to ensure that it is not breaching any laws, rules and regulations in UAE,” he said. – Bernama