Serba Dinamik Annual Report 2018

SERBA DINAMIK HOLDINGS BERHAD ANNUAL REPORT 2018 17 DEAR SHAREHOLDERS, In the past year, the oil and gas (“ O&G ”) industry has shown signs of recovery after a few years of uncertainty. It could be seen that the average closing prices of crude oil have fairly stabilised at approximately USD65 per barrel on average . The production of oil has reached its record high, however, in the times of technology advancement, there has been a shift in sentiment against the industry itself. The 5 th OPEC and non-OPEC Ministerial Meeting concluded that the oil market has reached record low in terms of its prices, its worst price plunge since the 2008 Sub-prime Mortgage Crisis. This has ratcheted up pressure on the budgets in oil-exporting countries. In the effort of salvaging oil prices, OPEC begun to impose production cuts of supplies in several nations to end its downturn. Nevertheless, we can see a silver lining as the market is showing signs of improvements in the coming year of 2019. With that being said, while the industry sentiment remains cautious but with hopes of recovery, Serba Dinamik has weathered through 2018 and delivered yet another year of outstanding performance for the financial year ended 31 December 2018 (“ ”).