Serba Dinamik remains solid O&G player despite market turmoil

By Azman Ujang

KUALA LUMPUR: Malaysian oil and gas (O&G) services giant Serba Dinamik Holdings Bhd remains strong with good growth prospects for the coming years despite facing a very challenging market, an industry observer said.

The observer told Bernama that the company also played an important role in the industry and many of its services are considered critical to the operations of various O&G industry players in the international markets.

The observer said any disruption to Serba Dinamik’s services, not only to local customers but also in international markets, could affect many O&G project operations around the world.

This is evidenced by the company’s biggest assets which are its vast experience and strong presence in 20 countries supported by a workforce of 2,000 employees across all segments of its operations with a vendor and supplier base of 770 companies.

The observer said not many Bumiputera companies have achieved success in the highly competitive O&G industry in such a short period as Serba Dinamik.

Last week, Serba Dinamik was shaken by news on issues related to the audit of its 2020 financial report by external auditor KPMG.

An internal source of Serba Dinamik said the company remained fully focused on its operations and is very positive about its future growth prospects.

“Despite facing numerous market challenges, the company’s fundamentals and prospects remain intact. Serba Dinamik’s business and services fundamentals are still strong. We are committed to the continuity of the company’s business operations. The support from our customers and suppliers are very encouraging. In fact, it is growing,” the source said.

The company was founded in 1993 by Datuk Dr Mohd Abdul Karim Abdullah with its first service centre in Bintulu, Sarawak providing maintenance, repair and overhaul (MRO) services for rotary equipment.

It grew rapidly over the next two decades and was listed on the Main Market of Bursa Malaysia in 2017.

The source said Serba Dinamik has earned the trust and respect of other industry players besides improving its performance in terms of operating economics and services price that is expected to lead to more significant business opportunities, especially growth from other sectors such as information and communication technology (ICT).

This is clearly proven by the growth of this company’s projects in the past year despite facing an uncertain pandemic situation.

Among Serba Dinamik’s achievements in 2020 were winning two engineering, procurement, construction and commissioning (EPCC) projects in Abu Dhabi with an estimated contract value of $1.78 billion ($1=RM4.11).

The company also acquired Teluk Ramunia Yard in Kota Tinggi, Johor from Petronas Assets Sdn Bhd, a wholly-owned unit of Petroliam Nasional Bhd, and completed the construction of Bintulu Integrated Energy Hub in Kidurong, Bintulu.

Within the same year, it secured two ICT contracts to implement a digital platform in Zambia worth RM529.63 million, signed a memorandum of understanding (MOU) with Huawei Technologies (Malaysia) Sdn Bhd and acquired Serba Dinamik Education Sdn Bhd (formerly known as Prestariang Education Sdn Bhd).

The source said although the company is facing a problematic issue raised by its external audit, it is currently working to address the issue and find solutions in the interest of shareholders as well as other stakeholders.

“Certainly, Serba Dinamik is looking for the best way to address this issue and what is important is that every decision should take into account various perspectives for the benefit of shareholders and other stakeholders,” the source added.

Serba Dinamik also played its role in corporate social responsibility (CSR) by providing immediate assistance worth RM5 million to those in need to fight the Covid-19 pandemic in the form of donations of personal protective equipment (PPE) such as gloves and masks as well as food.

Besides CSR programmes in the country, Serba Dinamik is also very active in providing assistance in various international locations, including in Indonesia, New Guinea and Senegal in efforts to combat the Covid-19 pandemic.

Many CSR programmes have also been planned between June and December this year including emergency aid for Palestinians through donation collections from all Serba Dinamik staff throughout Malaysia which would be channelled to several non-governmental organisations in Malaysia.

It would also donate tablets for educational purposes to students undergoing home-based teaching and learning as well as those most in need and affected by the pandemic, especially the poor and residents of squatter and People’s Housing Programme. – Bernama