Serba Dinamik Annual Report 2018

22 ANNUAL REPORT 2018 SERBA DINAMIK HOLDINGS BERHAD OUR ACHIEVEMENTS IN 2018 - KEY HIGHLIGHTS OF THE YEAR I am thrilled to present our Annual Report and Audited Financial Statements of the Company for the financial year ended 31 December 2018 ( “FYE2018” ). Here is a summary of our remarkable milestones achieved in 2018: 1. Financially, we have achieved a significant growth of 20.60% in revenue at RM3.28 billion for the Financial Year Ended 2018 ( “FYE2018” ), as compared to RM2.72 billion for the preceding financial year ended 31 December 2017 ( “FYE2017” ). The improvement in revenue was mainly driven by our operations & maintenance ( “O&M” ) segment. Hence, the Company’s Profit Before Tax ( “PBT” ) and Profit After Tax ( “PAT” ) for FYE2018 stood at RM437.63 million and RM392.84 million, with an increment of 26.46% and 28.89% respectively as compared to RM346.07 million and RM304.79 million in FYE2017. 2. In terms of O&M and EPCC contracts, 2018 started strong for us. We managed to secure new O&M and EPCC contracts with record-breaking valuations which has now become a milestone and benchmark for the organisation. Of course, these contracts are not only from Malaysia but also from several countries abroad such as Indonesia, Laos, and a few countries in the Middle East and Central Asia. We have also secured additional contracts through our asset ownership model. This is to ensure the longevity and profitability of our business in this segment which is intended to positively contribute to our Group’s total revenue. 3. To ensure our continued presence in the market, we have put more focus into ICT. In August, we entered a Memorandum of Understanding (“ MoU” ) with Microsoft in conjunction with our company embracing Industry 4.0. The partnership aims to enhance our productivity, cost-efficiency and innovation through digital mediums. We have also acquired a 30% stake from the Indian based eNoah iSolutions Pvt. Ltd ( “eNoah” ), through our wholly owned subsidiary, Serba Dinamik IT Solutions Sdn Bhd. With the expertise and reputation of eNoah , we are confident that we would be enhance the growth of our IT segment and strengthen our presence in the Asian region. We hope to be a leader in the adoption of digitisation in the O&G industry. We look forward to the potential growth from our IT segment after the acquisition which we predict would be in the range of 2.00%-2.50% by the following year. 4. We believe in talent management and expanding our capabilities through education. Therefore, we acquired 70% of Materials Technology Education Sdn Bhd for RM480,000.00 through wholly owned subsidiary, Telegistics Asia Sdn Bhd. The purpose of this acquisition is to solidify our belief in technical training programs which would then allow our company to conduct extensive trainings, in-house, which is crucial for the support in our business operations. 5. In recognition of our efforts for the year, we are proud to mention that Serba Dinamik was awarded the Forbes Asia’s Best Under A Billion Award. This award highlights the 200 leading public listed companies in the Asia Pacific region with annual revenue under USD1 billion. This remarkable milestone has further motivated us to give our best in achieving our goals, which are to add value to in terms of safety, quality and effectiveness, be more sustainable and globally conscious, and to be able to maximise our shareholder returns. 6. One of our ventures in the property sector is the Pengerang Eco Industrial Park ( “PeIP” ). In April 2018, the development of PeIP has officially begun. This project is in fact Malaysia’s first Global Centre of Excellence for the oil and gas industry which focuses in maintenance, repair and overhaul S TAT E M E N T F R O M O U R M D / C E O