By Mohd Iswandi Kasan Anuar
KUALA LUMPUR: Oil and gas price volatility will not have a long-term impact on Serba Dinamik Holdings Bhd’s operation and maintenance (O&M) activities.
Nevertheless, said its group managing director and chief executive director Datuk Dr Mohd Abdul Karim Abdullah, maintenance is still required as long as productions are ongoing.
“Serba Dinamik is actively monitoring the situation in the Middle East and Malaysia with regard to our O&G segment. As of now, operations are not affected,” he told Bernama today.
He said the company’s short to mid-term liquidity was also sufficient to ensure operations remained intact should the situation worsen.
Oil prices slumped to US$30 per barrel from US$60 on Monday, the lowest ever recorded since the Gulf War in 1991, following the Organisation of the Petroleum Exporting Countries (OPEC) and Russia’s failure to agree on output cut to bolster prices.
In the fourth quarter financial year ended Dec 31, 2019, Serba Dinamik’s O&M segment contributed 85.2 per cent or RM1.16 billion to the group’s total revenue.
This represented an increase of 32.7 per cent compared to RM873.32 million a year earlier due to higher activities from the maintenance, repair and overhaul of rotating equipment activities in Qatar, United Arab Emirates, Bahrain and Malaysia.
Meanwhile, Abdul Karim said the company’s strategy on tapping into other geographical presence had been quite successful.
“Our focus is trying to reduce long term reliance on the oil and gas sector,” he said.
On the impact of COVID-19 on Serba Dinamik’s operations, he said it was minimal.
Similarly, he said, the political situation in Malaysia does not have any impact on the company’s operations as its contracts are mostly based on commercial transactions.
Prime Minister Tan Sri Muhyiddin Yassin on Monday unveiled his cabinet lineup of 31 including four senior ministers in charge of international trade and industry, defence, works, and education.
Shares of the company closed flat at RM1.85. ― BERNAMA
