Declares an interim dividend of 1.40 sen per ordinary share for FYE 31 December 2019
KUALA LUMPUR, 22 AUGUST 2019 - Deleum Berhad (“Deleum” or the “Group”) has reported a pre-tax profit of RM13.3 million for its second quarter of 2019 (Q2FY2019), bringing the Group’s cumulative pre-tax profit for the half-year ended 30 June 2019 to RM15.9 million.
The Group, which provides a diverse range of supporting specialised products and services to the oil and gas industry, saw its quarterly revenue increase by 52.3% or RM72.9 million from RM139.3 million to RM212.2 million. Cumulatively, its half-yearly revenue strengthened to RM339.7 million, an increase of 37.1% or RM91.9 million, compared to the corresponding period of RM247.8 million. The strong results were generated on the back of revenue growth registered across all reportable segments.
The Group’s Power and Machinery (P&M) segment posted an increase in quarterly revenue by 20.8% or RM16.5 million to RM96.0 million against the corresponding period. This was attributed to higher work orders secured for exchange engines, valves and flow regulator services and higher revenue contribution from retrofit projects. The segment results contracted by RM5.0 million despite higher revenue recorded due to unfavourable change in sales mix as well as the weaker currency exchange of Ringgit Malaysia against US Dollar. The Oilfield Services (OS) segment’s revenue for the quarter increased to RM39.8 million, up 27.4% or RM8.6 million, compared against the corresponding quarter of RM31.3 million; mainly attributable to the higher work orders from well intervention and enhancement services and increased slickline services in the East Malaysia region. Notwithstanding the higher revenue earned, the segment results fell to a loss of RM2.6 million against the previous corresponding quarter due to downward pressure on margins earned from local and foreign slickline operations.
The Integrated Corrosion Solution (ICS) segment saw a turnaround in results from a loss of RM2.9 million recorded in the previous corresponding quarter to a profit of RM8.7 million in the current quarter, up 396.1% or RM11.7 million. This rides on the back of higher revenue of RM76.2 million, up 168.1% or RM47.8 million, compared to the corresponding quarter of RM28.4 million mainly driven by revenue generated from its Maintenance, Construction and Modification services contract and the renewal of Pan Malaysia Painting and Blasting Contract which expired in November 2017.
Deleum also declared a first interim single tier dividend of 1.40 sen per ordinary share on 401,553,500 ordinary shares for the financial year ending 31 December 2019. The dividend will be payable to ordinary shareholders on 20 September 2019.