A provider of diverse range of supporting specialised products and services to the oil and gas industry since 1982, Deleum turned in an impressive 25% increase in Group PATAMI (Profit After Tax and Minority Interest), from RM23.2 million to RM29.0 million for FY2011, despite a slight decline in Group revenue from RM399.05 million (in FY2010) to RM396.30 million. The increase was mainly attributable to higher operating profits in the Power and Machinery segment and improved results from associate companies.
“2011 marks the best results the Group had enjoyed to date in spite of the fact that it had been challenging on many fronts. However, the oil and gas industry has been identified as one of the National Key Economic Areas and this has greatly spurred upstream activities leading to an increase in demand for the products and services offered by Deleum,” said Deleum’s Group Managing Director, Encik Nan Yusri.
According to Encik Nan Yusri, with the greater exploration and production activities encouraged by PETRONAS in Malaysia and its introduction of the risk service contract to develop marginal fields, these activities will spur business opportunities in the oil and gas industry and further promote upstream activities in the country.
Encik Nan Yusri revealed that during the financial year under review, the Group revised its operating segments to be based on three main business segments – Power and Machinery, Oilfield Services and Maintenance, Repair and Overhaul (MRO).
He commented that while Power and Machinery segment remains as the Group’s largest revenue contributor, Oilfield Services and MRO segments will undergo major growth in the future. “Our aim is to grow these segments by increasing our market share,” Encik Nan Yusri added.
To further entrench its position in the market, Deleum plans to venture into new products and services and to further enhance the value of its self-operated business. Deleum remains upbeats about its prospects in Malaysia.
At its Annual General Meeting, Deleum’s shareholders approved the Group’s proposal for a one-for-two bonus issue and Deleum had also subsequently made an announcement of the entitlement date for the bonus issue which is on 8 June 2012.
Encik Nan Yusri also reiterated that for its 1st quarter FY2012, the Deleum Group recorded a 91.7% jump in pre-tax profit to RM15.3 million compared to RM8.0 million in the corresponding quarter.
The Group’s segments recorded an overall improvement in results by RM6.7 million, from RM6.5 million achieved in the previous corresponding quarter to RM13.2 million in the current quarter. The main contributors for the improved results were the Power & Machinery and Oilfield Services segments which increased by RM4.4million and RM2.6 million, respectively. However, the increase was off-set by the MRO segment by RM0.3 million for the 1st quarter FY2012.
“The Deleum Group has made significant strides over the years. Indeed, the time has come for growth and hence, for us to actively look for opportunities to expand either via mergers and acquisitions or through strategic alliances, particularly those that are viable and synergistic to our core business. We are also focusing more intently on penetrating neighbouring markets in order to establish regional presence by 2015,” revealed Encik Nan Yusri.