FARAH ADILLA
KUALA LUMPUR: Serba Dinamik Holdings Bhd is targeting a 10-15 per cent growth in net profit for the year ending December 31, 2020.
Group managing director and chief executive officer Datuk Dr Mohd Abdul Karim Abdullah said this was on the back of Serba Dinamik's diversified portfolios and healthy order book of RM17 billion.
The forecast, however, is slightly lower than the group's annual projected net profit growth of 15-20 per cent.
Karim said over the years, the company had been progressing to be less dependant on its oil and gas segment, which contributes 45 per cent to its revenue.
"Operation and maintenance have always been one of our core businesses. As far as these contracts that we have in Malaysia and the Middle East are concerned, they are all still active in nature.
"Even though oil price has collapsed to its lowest level in history at one point, production activities are still running.
"As for our EPCC contract, engineering, procurement, construction and commissioning (EPCC), 55 per cent of our contracts are non-O&G related," he said at a virtual press conference today.
Karim said Serba Dinamik was targeting to increase the non-O&G related EPCC contracts to 70 per cent in the next three years.
Just last month, Serba Dinamik bagged a US$1.78 billion (RM7.7 billion) construction contract in Abu Dhabi - its largest win to date.
The contract is for the EPCC of an innovation hub, academic campus, related facilities and information technology (IT) infrastructure.
Subsequently, the company raised RM456.7 million through a private placement.
The fundraising exercise was to repay some of its bank borrowings and working capital.
It had proposed a private placement involving the issuance of 394 million new Serba Dinamik shares, representing 10 per cent of the company's total number of issued shares.
The placement was done at RM1.49 a share and was oversubscribed by 1.5 times.
This fell short of between RM500 million and RM700 million that analysts said it needed to raise in order to execute its hefty orderbook, in order to maintain its net-gearing below 1.0x (currently at 0.8x).