In the fourth quarter, the Group registered a RM20.2 million pre-tax profit on the back of revenue of RM176.9 million. Revenue had increased by 13.9% compared to the previous corresponding period due to significant contribution derived from the Oilfield Services segment increasing by 171.3% to RM20.9 million (Q4 FY2012: RM7.7 million) while the Power and Machinery segment increased by 5.3% to RM146.4 million (Q4 FY2012: RM139.1 million). The Maintenance, Repair and Overhaul (“MRO”) segment increased revenue contribution by 12.7% to RM9.6 million (Q4 FY2012: RM8.5 million).
Deleum Group Managing Director Nan Yusri Nan Rahimy said for the year under review, the Group’s Oilfield Services segment turned in a 43.9% increase in segment result, up from RM5.1 million to RM7.3 million. This was attributable to improved margins despite a contraction in revenue which during the corresponding year had consisted mainly of lower margin third party wireline sales and the one-off sale of critical spares under the wellhead maintenance contract.
The Power and Machinery segment recorded its segment result from RM58.1 million in FY2012 to RM64.0 million in FY2013, a 10.2% improvement over the corresponding year largely as a result of marketing fees earned from the provision of an offshore facility.
The MRO segment, which registered a loss of RM1 million in the corresponding year, turned around to post a segment result of RM1.9 million for the current year. This was mainly due to a full year’s profit contribution from Deleum Primera Sdn Bhd.
On the back of continued improved results, Deleum has declared a second interim dividend of 11.0 sen per ordinary share in announcing its financial results for the year ended 31 December 2013 payable to shareholders on 26 March 2014. Combined with the first interim dividend of 6.0 sen per share which was paid on 25 September 2013, this will bring the total dividend in respect of FY2013 to 17.0 sen per share – the highest ever distribution of dividend by Deleum to date. (A total of 15.0 sen dividend per ordinary share on 150 million ordinary shares was paid out in respect of FY2012.)
Nan Yusri added that the favourable financial results achieved by Deleum was in tandem with the good growth attained by the Malaysian oil and gas sector driven largely by the strong exploration and production activities undertaken by PETRONAS as well as the continued roll-out of contracts to the industry. Deleum is in a good position to continue to contribute and benefit from these key growth areas.