- Group ends FY2023 with steady financial performance, with net profit rising modestly to RM45.7 million
- Declares second interim single tier dividend of 3.70 sen per share; bringing total dividend to 5.70 sen per share in respect of FY2023 or 50.0% dividend payout
KUALA LUMPUR, 26 FEBRUARY 2024 - Leading oil & gas (O&G) services provider Deleum Berhad (“Deleum” or the “Group”),grew 25.1% in the Group’s pre-tax profit to RM84.9 million for the financial year ended 31 December 2023 (FY2023) from RM67.9 million previously, in tandem with an increase in group revenue.
The Group’s revenue increased 13.5% in FY2023 to RM792.0 million from RM698.0 million the previous year, driven primarily by a strong revenue contribution from the Power and Machinery segment, which generated RM668.0 million for the year.
The Group ended FY2023 with a steady financial performance, with net profit rising modestly to RM45.7 million from RM 42.1 million last year. Despite higher revenue and pre-tax profit, net profit increased marginally due to higher income tax expenses and non-controlling interests.
“As we reflect on our financial performance for the year 2023, I am pleased to announce that our strategic initiatives have yielded yet another year of solid financial performance.
Looking ahead we have plans lined up for FY2024 to accelerate growth and strengthen our position in the industry. Our commitment to fostering growth and creating value for all stakeholders is unchanged. We are committed to capitalising on new opportunities, optimising our resources, and encouraging innovation to propel Deleum to even greater success.” - Rao Abdullah Group Chief Executive Officer, Deleum Berhad
Alongside the sturdy financial performance, the Group declared a second interim single tier dividend of 3.70 sen per share in respect of FY2023, payable on 29 March 2024. Together with the first interim single tier dividend of 2.00 sen paid on 29 September 2023, Deleum declared a total dividend of 5.70 sen per share for FY2023. A dividend payout of RM22.9 million represents 50.0% of FY2023 net profit.
Deleum has maintained a strong balance sheet and continues to achieve healthy sales performance to power its core businesses. As at FY2023, the Group’s net cash position has further strengthened, with cash and bank balances of RM215.9 million exceeding total borrowings of RM2.4 million, compared to RM178.0 million and RM8.8 million on 31 December 2022 respectively. Shareholders’ equity increased to RM413.4 million as of 31 December 2023, up from RM388.8 million as of 31 December 2022.
The Group’s firm orderbook currently stands at RM552.6 million, which consists of works and equipment mostly to be delivered within the next 24 months
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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.
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