KUALA LUMPUR (June 14): Serba Dinamik Holdings Bhd posted its largest quarterly net loss of RM972.91 million for the third quarter ended March 31, 2023 (3QFY2023), mainly due to impairment of trade receivables amounting to RM865.1 million arising from the projects that the company was unable to fulfill.

The troubled oil and gas company, which has been in the red for seven straight quarters, recorded RM89.67 million net loss in 2QFY2023. For 3QFY2022, its net loss was RM434.19 million.

Loss per share increased to 26.1 sen from 11.7 sen. Quarterly revenue tumbled 97% to RM6.18 million from RM205.48 million, due to lower contribution from all business divisions.

Operations and maintenance (O&M) segment’s revenue contracted 97.42% to RM5 million from RM193.74 million, while engineering, procurement, construction and commissioning posted a 92.24% drop in revenue to RM544,000 from RM7.01 million.

Revenue for information and communications technology decreased to RM241,000 from RM2.69 million while education and training segment’s revenue fell to RM389,000 from RM2.05 million.

Looking ahead, the group anticipates its operations will remain challenging this year due to uncertainty in the global economy as well as the current challenges the company is facing from a liquidity perspective.

“The group views that the O&M segment will remain its core competency and provide the fundamentals of its operations. With the group being classified as a Practice Note 17 (PN17) company, the board pledges to resolve the ongoing issue, including the restructuring and regularisation plan, in the best interests of stakeholders,” it added.

Serba Dinamik slipped into the PN17 status in January last year, after its external auditor Nexia SSY PLT, expressed a disclaimer of opinion on its audited financial statements for the 18-month financial period ended June 30, 2021.

As at end-March, the company’s borrowings stood at RM3.72 billion against RM36.45 million in cash.