- Buoyed by accelerated exploration and production activities, group revenue rose 71.3% in 3Q23 to RM241.8 million.
- Group net profit slightly increased by 3.5% to RM12.2 million on higher expenses.
- Intensifying efforts to grow contributions from Oilfield Services and Integrated Corrosion Solution segments.
KUALA LUMPUR, 28 NOVEMBER 2023 - Leading oil & gas (O&G) services provider Deleum Berhad (“Deleum” or the “Group”), grew 26.2% in the Group’s pre-tax profit to RM25.3 million for the third quarter ended 30 September 2023 (3Q23) from RM20.1 million previously, mainly due to the significant contribution from its Power and Machinery (P&M) segment.
The Group’s revenue rose 71.3% in 3Q23 to RM241.8 million from RM141.2 million in the previous year’s corresponding quarter, buoyed by accelerated exploration and production activities. Despite the strong growth in revenue, the Group’s net profit for 3Q23 slightly increased by 3.5% to RM12.2 million from RM11.8 million on account of higher operating expenses incurred with foreign exchange loss and fair value loss on forward foreign currency exchange contracts as compared to a fair value gain recorded in 3Q22.
For the nine months ended 30 September 2023 (9M23), the Group’s pre-tax profit increased by 32.3% to RM59.0 million from RM44.6 million previously, while revenue rose 49.4% to RM553.3 million from RM370.3 million a year ago. Subsequently, net profit rose marginally to RM31.1 million from RM28.4 million previously.
“The third quarter marked another period of improvement in results for Deleum Group, with the total net profit increasing by 9.5%. We are pleased to deliver a steady group financial performance in the current quarter amidst the various challenges in the industry, proving our dedication to deliver quality services to our clients.
We will continue to intensify our efforts in increasing contributions from all our segment’s products and services especially in the newly established business line of Solid Controls. Throughout the year, we successfully obtained an estimated aggregate contract value of RM107.0 million in our solid control contract awards for the OS segment, bringing our OS order book to RM189.0 million as at 30 September 2023.
As the industry is experiencing inflationary pressures and rise in costs of materials and manpower; the Group’s focus will be to develop a more robust pricing strategy for our future contracts to ensure we maintain profitability for the Group. The Group has also recently agreed with an established international service provider to collaborate in pursuing opportunities in Malaysia jointly paving way for growth and development for the Group to further strengthen and enhance its presence in Malaysia with the support of the said service provider.” Rao Abdullah Group Chief Executive Officer, Deleum Berhad
Deleum has maintained a strong balance sheet and continues to achieve healthy sales performance to power its core businesses. As at the end of 3Q23, the Group’s net cash position has further strengthened, with cash and bank balances of RM230.2 million exceeding total borrowings of RM1.9 million, compared to RM178.0 million and RM8.8 million on 31 December 2022 respectively. Shareholders’ equity increased to RM398.7 million as of 30 September 2023, up from RM388.8 million as of 31 December 2022.
The Group’s sturdy orderbook currently stands at RM449.3 million, which consists of works and equipment mostly to be delivered within the next 24 months.
About Deleum Bhd
Deleum Berhad is an investment holding company and through its subsidiaries, provides a diverse range of supporting specialised products and services to the oil and gas industry, particularly in the exploration and production sector. Its range of products and services is distinguished according to its three core business segments – Power and Machinery, Oilfield Services and Integrated Corrosion Solutions. Deleum is listed on the Main Market of Bursa Malaysia.