KUALA LUMPUR (Feb 28): Troubled oil and gas services provider Serba Dinamik Holdings Bhd booked its second straight quarterly loss in the second financial quarter ended Dec 31, 2021 (2QFY22), with a net loss of RM290.33 million as revenue further plummeted across key operating segments.
The group, which had last year changed its financial year end to June 30 from Dec 31, saw its net loss for 2QFY22 widen from RM42.11 million in 1QFY22.
As a result, loss per share came in higher at 7.83 sen for 2QFY22 compared with 1.14 sen for 1QFY22.
Revenue for 2QFY22 fell 77.8% quarter-on-quarter to RM177.14 million from RM799.35 million in 1QFY22, with an 80.9% decline in contribution from its operations and maintenance (O&M) division while the engineering, procurement, construction and commissioning (EPCC) division’s contribution fell 41.9%.
In its bourse filing on Monday (Feb 28), Serba Dinamik pointed to lesser O&M activities in Qatar, the United Arab Emirates and Malaysia, and a decline in EPCC activities in Malaysia as well.
Notably, Serba Dinamik said the Middle East contributed RM90.56 million or 51.12% of revenue in the current quarter under review. Malaysia accounted for RM44.1 million or RM24.89% of the total. The group also has operations in Indonesia, Turkmenistan, India, Tanzania and the UK, the filing showed.
For the six-month period ended Dec 31, 2021 (1HFY22), Serba Dinamik posted a net loss of RM332.44 million or 8.97 sen per share on revenue of RM976.49 million, of which 65.5% was derived from the Middle East with another 26.7% from Malaysia.
On prospects, Serba Dinamik said despite the completion of the statutory audit, the board of directors anticipates that the group's operations will remain challenging. On the other hand, the board pledges to resolve the ongoing issue, including the restructuring and regularisation plan, in the best interests of stakeholders.
The Practice Note 17 company, which has been caught up in a series of legal tussles with regulators amid a review of its external auditor’s findings, has been ordered by the Kuala Lumpur High Court to reveal an update of the review to the public.
A criminal trial is ongoing involving four company officials in relation to an alleged false statement of the company’s revenue of a record RM6.01 billion in the financial year ended Dec 31, 2020 (FY20). Separately, Serba Dinamik has filed for judicial management across several subsidiaries as part of its restructuring plan.
Trading of Serba Dinamik shares has been suspended since October last year after it failed to comply with Bursa Malaysia’s directive to make an announcement on the findings from the factual findings update on the Special Independent Review by Oct 26, 2021. Its last traded price was 35 sen, with a market capitalisation of RM1.3 billion.