• Achieves record earnings on robust contributions from P&M and OIS segments
• Declares second interim dividend of 5.30 sen per share; bringing total dividend to 9.30 sen per share in respect of FY2024 or 50.4% dividend payout
Kuala Lumpur, Malaysia, 28 February 2025 – Leading oil & gas (O&G) services provider Deleum Berhad (Deleum, the Group, 迪隆, Bloomberg: DLUM MK) hits its highest annual net profit of RM74.2 million since its inception for the financial year ended 31 December 2024 (FY2024), a 62.1% jump from RM45.7 million in the previous year.
The record-breaking performance was mainly driven by steady growth in the Power and Machinery (P&M) segment and a notable turnaround in the Oilfield Integrated Services (OIS) segment, which swung into profit during the year.
In tandem with the strong performance from both segments, Deleum also saw its profit before tax (PBT) surge by 60.4% to RM136.2 million in FY2024 from RM84.9 million previously, while group revenue increased by 14.6% to RM907.5 million from RM792.0 million last year.
“I would like to congratulate my team for a job well done and the Board for the invaluable guidance given during the year, which highlights the effectiveness of our transformation strategy in positioning ourselves as a value-driven and growth-oriented company. Our focus on sustainable-margin businesses, enhancing operational efficiency, and optimizing resource allocation have been instrumental in achieving this performance. As we move into 2025, we are optimistic about the future. With long-term contracts in place and a clear strategic roadmap, we are well-positioned to continue scaling, driving strong results, and paving the way for further expansion in the years ahead.” Rao Abdullah Group Chief Executive Officer
For the fourth quarter ended 31 December 2024 (4Q24), net profit grew 19.1% to RM17.5 million from RM14.7 million in the same period last year. PBT rose 26.6% to RM32.8 million from RM26.0 million previously, as group revenue edged up 5.1% to RM250.9 million from RM238.7 million last year.
Alongside the commendable financial performance, the Group declared a second interim single-tier dividend of 5.30 sen per share in respect of FY2024, payable on 28 March 2025. Together with the first interim single-tier dividend of 4.00 sen per share paid on 30 September 2024, the total dividends for FY2024 amount to 9.30 sen per share, representing a payout of RM37.3 million or 50.4% of net profit, in line with the Group’s dividend policy. Notably, this marks Deleum’s highest dividend payout since its listing in 2007.
Power and Machinery (P&M) Segment
In 4Q24, revenue from the P&M segment decreased 5.1% to RM191.9 million from RM202.2 million in the previous year’s corresponding quarter, attributed to lower sales of exchange engines. However, segment PBT increased 11.1% to RM38.3 million from RM34.5 million previously, supported by improved gross profit margins.
Due to higher activities in the segment, P&M segment revenue was up by 7.3% to RM716.7 million in FY2024 from RM667.9 million in the previous year, while PBT grew by 36.5% to RM135.6 million from RM99.3 million last year.
Oilfield Integrated Services (OIS) Segment
The OIS segment saw 4Q24 revenue jump 62.1% to RM58.6 million from RM36.1 million in the same quarter last year, primarily due to higher business activities from slickline and asset integrated solution services in East Malaysia, specialty chemicals and well stimulations services, as well as maintenance, construction and modification (MCM) projects. Stronger revenue in 4Q24 helped narrow the segment’s loss before tax to RM4.8 million, compared to a loss of RM8.7 million previously.
For FY2024, the OIS segment’s revenue climbed 54.0% to RM189.9 million from RM123.3 million in the previous year. PBT for the segment rebounded to RM4.2 million, a significant turnaround from the loss of RM15.9 million in FY2023. The recovery was largely driven by higher gross profit and reversal of impairment on trade receivables.
As at FY2024, the Group’s net cash position remained robust, with cash and bank balances of RM199.3 million and total borrowings at RM15.1 million. Shareholders’ equity increased to RM463.0 million as at 31 December 2024 from RM413.4 million at the end of 2023.
The Group’s firm orderbook stands at RM1.6 billion, which consists of works and equipment mostly to be delivered within the next 24 months.
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About Deleum Bhd (https://www.deleum.com/)
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 two core business segments – Power and Machinery and Oilfield Integrated Services. Deleum is listed on the Main Market of Bursa Malaysia.