On the year-to-date basis, the Group has recorded a 26.0% increase in pre-tax profit from RM55.4 million in the corresponding period to RM69.8 million in the current nine-month period. Based on the current nine-month pre-tax profit, the Group has achieved 92.3% of the preceding full year pre-tax profit. The Power and Machinery segment and Oilfield Services segment are the main drivers attributed to better earnings.
The Power and Machinery segment recorded an increase of RM5.1 million or 24.4%, bringing in higher segment results of RM26.2 million in the current quarter. The improved results was mainly attributable to retrofit projects consisting of Gas Turbine Integrity and Rehabilitation (GATIR) under a Long Term Service Agreement which was secured in last quarter of 2013.
In line with the commendable increase in revenue, the Oilfield Services segment recorded an increase in segment results from RM3.5 million in the corresponding quarter to RM6.0 million in the current quarter. The improved results was largely attributable to the increase in activities, however, it was offset by the higher operating expenses and finance expenses incurred in relation to slickline activities.
The Maintenance, Repair and Overhaul segment recorded a loss of RM1.1 million despite a 2.8% increase in revenue due to weaker margins and higher operating expenses.
Deleum’s Group Managing Director, Nan Yusri bin Nan Rahimy, said: “We noted that the global benchmark oil prices have eased as a result of softer demand and that the downward pressure on oil price is expected to continue. This trend is having an effect on the level of activities of the oil and gas producers and contractors in Malaysia.”
“Nevertheless, we do not expect these developments to materially affect the level of activities of our Group for the financial year ending 31 December 2014 but we continue to remain cautious.”