In the fourth quarter of FY2014, the Group registered a RM21.5 million pre-tax profit on the back of revenue of RM205.8 million. Revenue had increased by 18.6% compared to the previous corresponding period due to significant contribution derived from the Oilfield Services segment increasing by 155.7% to RM53.4 million (Q4 FY2013: RM20.9 million).
Deleum’s Group Managing Director, Nan Yusri bin Nan Rahimy, said for the year under review, the increase in pre-tax profit was largely due to higher segment results from Oilfield Services and Power and Machinery segments. The hefty 288.4% jump in segment results of its Oilfield Services segment to RM28.3 million was due to increased slickline and oilfield chemical activities.
The Power and Machinery segment reported an improvement of 9.9% in segment results of RM67.9 million in FY2014 compared to RM61.8 million in FY2013 attributable to favourable performance from retrofit projects, exchange engines, field service representatives, and repair and maintenance of valves and flow regulators.
The Maintenance, Repair and Overhaul (MRO) segment, however, registered a loss of RM5.3 million in FY2014. “We are cognisant of MRO segment losses and have taken various initiatives to turnaround the segment’s performance in order to deliver a positive outlook in the near future,” Nan Yusri explained.
In line with its improved results, Deleum has declared a second interim single tier dividend of 5.0 sen per ordinary share in announcing its financial results for FY2014 payable to shareholders on 26 March 2015. Combined with the first interim single tier dividend of 2.5 sen per ordinary share which was paid on 25 September 2014, this will bring the total dividend in respect of FY2014 to 7.5 sen per ordinary share totalling RM30.0 million based on 400 million ordinary shares, as compared to 17.0 sen per ordinary share, totalling RM25.5 million based on 150 million ordinary shares in FY2013.
Looking ahead, Nan Yusri opined that in spite of the challenges posed by lower global oil prices and PETRONAS’ capital expenditure deferments and operating expenses reductions, existing production activities are still expected to continue.
“The continuance of such activities will ensure the on-going need for products and services for operations and maintenance. Deleum, with our diversified portfolio of products and services, is in a good position to meet those requirements although, admittedly, there will be a downward pressure on margins and activity levels,” cautioned Nan Yusri.