For the current nine-month period ended 30 September 2013, the Group recorded a 15.0% rise in profit before tax from RM48.2 million in the corresponding nine-month period to RM55.4 million notwithstanding the decline in the Group’s revenue by 3.2%. The increase for the current period was largely due to improved results from all the business segments.
The Group’s Power and Machinery segment posted a higher segment result, up 40.1% to RM20.8 million for the current quarter from RM14.9 million in the corresponding quarter. The improved result was mainly due to commission received in connection with the provision of an offshore facility, write-back of impairment for doubtful debts and foreign exchange gains.
The Oilfield Services saw an almost threefold increase in segment result from RM1.2 million in the corresponding quarter to RM3.4 million for the current quarter. This was attributable to higher revenue from wireline jobs and related products and services.
Despite higher revenue and higher margin achieved, the Maintenance, Repair and Overhaul segment registered a loss of RM0.4 million for the current quarter compared to a profit of RM0.2 million in the corresponding quarter. This was largely attributable to higher operating expenses of the segment, including impairment for doubtful debts of RM0.7 million.
Deleum Group Managing Director, Nan Yusri said: “As we move towards the end of the financial year, we maintain our optimistic outlook given the positive developments within the Group. Following the recently awarded Pan Malaysia slickline contracts in the preceding quarter, Turboservices Sdn. Bhd., a subsidiary of Deleum Berhad, received a letter of award in September 2013 from PETRONAS to provide aftermarket turbomachinery maintenance services for Solar Turbines Incorporated’s gas turbines in Malaysia. The attainment of the abovementioned contracts underscores Deleum’s sustainable earnings with a strong recurring services income base which will last us at least to year 2020.”
Nan Yusri added: “In line with the Government’s efforts to address the decline in oil production, PETRONAS together with the Operators have strengthened production efforts through deep water exploratory drilling, revitalising mature fields and developing marginal fields, Deleum is in a good position to contribute to, and benefit from these key growth areas.”