The increase for the current 6-month period was largely due to higher segment results from the Oilfield Services and Power and Machinery segments.
Deleum’s Oilfield Services segment saw a 192.6% increase in its segment results to RM15.2 million for the current 6-month period against RM5.2 million in the corresponding period. The improved results are in line with the increase in activities of the segment.
The Power and Machinery segment recorded a 10.2% or RM2.3 million increase in its segment results from RM22.6 million in the corresponding 6-month period to RM24.9 million in the current 6-month period, mainly attributable to the higher retrofits and field service representatives activities.
The Maintenance, Repair and Overhaul (MRO) segment recorded a loss of RM1.2 million for the current 6-month period primarily due to projects deferment and higher operating expenses.
For the 2nd quarter of the financial year ending 31 December 2014 (2QFY2014), the Group reported a pre-tax profit of RM24.7 million compared to RM21.2 million in the corresponding quarter, representing a 16.7% hike.
According to Group Managing Director, Nan Yusri bin Nan Rahimy, the Group’s requirements for investments in plant and equipment remain high to enable it to serve its on-going contracts. Amongst the challenges faced by the Group are the rising costs of doing business specifically staff-related costs, coupled with the shortage of skilled manpower and rising interest charges on account of the expanded level of borrowings.
“However, we remain optimistic and positive with our prospects for the remainder of the financial year on the back of sustained exploration and production activities,” said Nan Yusri.
He added: “I am also pleased to declare our first interim single tier dividend of 2.5 sen per ordinary share on 400,000,000 ordinary shares of RM0.50 each, notwithstanding the share capital was enlarged from 150,000,000 to 400,000,000 ordinary shares subsequent to the completion of the bonus issue and share split on 17 June 2014. The dividend will be payable to the shareholders on 25 September 2014.”
The first interim dividend in respect of financial year ended 31 December 2013 was 6 sen per ordinary share on 150,000,000 ordinary shares of RM1.00 each.