Serba Dinamik 2Q net loss widens to RM251.54 mln

Serba Dinamik Holdings Bhd’s net loss widened to RM251.54 million in the second quarter ended Dec 31, 2023 (2QFY24) from RM89.67 million in the same period last year.

The financially distressed oil and gas (O&G) service provider said this was dragged by the zero revenue contribution from its engineering, procurement, construction and commissioning (EPCC) and information and communication technology (ICT) segments during the period, mainly due to contract termination and cease of operations in some of the group’s subsidiaries.

The Practice Note 17 (PN17) company said its revenue shrank to RM13.83 million in 2QFY24 from RM105.80 million previously.

“Operation and maintenance (O&M) segment remained the highest revenue contributor to the group’s revenue, generating 74.3 per cent of the total revenue, while education and training segment generated the remaining 25.7 per cent of the total revenue,” it said in a filing with Bursa Malaysia.

For the cumulative six months ended December 31, 2023, Serba Dinamik saw its net loss widen to RM336.24 million against RM194.27 million previously, while revenue dipped to RM28.03 million from RM319.38 million previously.

Moving forward, it said the board of directors anticipated that the group’s operations would remain challenging due to the uncertainty of 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 PN17 company, the board pledges to resolve the ongoing issue, including the restructuring and regularisation plan, in the best interests of stakeholders,” it said.