The overall segment results increased from RM23.8 million in the corresponding quarter to RM24.2 million in Q2FY2015. The higher segment results in Q2FY2015 was largely attributable to the higher contribution from the Integrated Corrosion Solution (formerly known as Maintenance, Repair and Overhaul) segment. Nevertheless, a lower share of associates’ results has led to a marginal lower pre-tax profit of RM24.1 million compared to RM24.9 million in the corresponding quarter, representing a 3.4% drop.
The Group’s Integrated Corrosion Solution (ICS) segment recorded RM1.5 million increase in its segment results from a segment loss of RM0.4 million in the corresponding quarter to a segment profit of RM1.1 million in the current quarter due to improved work orders for corrosion protection and maintenance.
In Q2FY2015, the Oilfield Services segment posted a higher revenue of RM39.7 million as compared to RM34.4 million in the corresponding quarter. As a result of the higher interest expense incurred in relation to the full drawdown of term loan facility at the end of the previous financial year, it recorded a lower segment results by RM1.0 million from RM9.4 million in the corresponding quarter to RM8.4 million in the current quarter. Whilst, the Power and Machinery (P&M) segment recorded marginal lower results by 0.9%, from RM14.9 million in the corresponding quarter to RM14.7 million in Q2FY2015 due to higher foreign exchange losses.
“Moving forward, we expect the operating environment to be even more challenging with great uncertainty over the oil prices. We will continue to monitor the situation even as we have adopted measures to address the impact of lower oil prices through cost containment and moderating capital expenditure,” said Group Managing Director, Nan Yusri bin Nan Rahimy.
He added: “I am pleased to declare our first interim single tier dividend of 2.0 sen per ordinary share on 400,000,000 ordinary shares of RM0.50 each, as we continue to reward our shareholders in line with our dividend policy. The dividend will be payable to shareholders on 25 September 2015.” The first interim dividend in respect of financial year ended 31 December 2014 was 2.5 sen per ordinary share.
Deleum also announced that its wholly-owned subsidiary, Deleum Services Sdn. Bhd., is acquiring the remaining 20 per cent stake in Delcom Holdings Sdn. Bhd. from Tan Sri Dato’ Seri Abdul Ghani Bin Abdul Aziz for a total cash consideration of RM3.169 million. The proposed acquisition is expected to provide additional recurring and sustainable income to the Group.