Bond Market News

Serba Dinamik reported a net loss of MYR 42mn ($10mn) in the quarter ended September 2021. This was Serba Dinamik’s first quarterly loss since its listing on Bursa in 2017. The company cited “corporate expenses and consolidation elimination of MYR 107.9 million ($25.7mn)” as the reason for the losses. It reported revenues of MYR 799.3mn ($190.2mn), down 34% QoQ. It said that the O&M segment continued to remain as its largest revenue contributor at MYR 742.9mn ($177mn) or 92.9% of revenues largely from operations in the Qatar and UAE, followed by Malaysia. The Middle East region was the largest contributor at over 70% of total revenue, followed by Southeast Asia with 28.9% of total revenue. Serba’s MD Datuk Dr. Mohd. Abdul Karim Abdullah said that despite positive fundamentals, its business environment remained challenging, due to a crisis from its incomplete statutory audit. Serba Dinamik recently missed a semi-annual sukuk payment on its 6.3% Sukuk due May 2022 and is currently undergoing a 30-day grace period. It was later downgraded to CC/C from CCC/CCC- by S&P/Fitch.

Serba Dinamik’s dollar bonds continue to trade at distressed levels with its 6.3% 2022s at 18.95 cents on the dollar.

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