Deleum Bhd recorded an increase of 15% in net profit to RM9.7 million in the second quarter ended June 30, 2023 (2Q23) from RM8.5 million respectively in the same period last year, primarily due to the significant contribution from its Power and Machinery (P&M) segment.

The substantial boost in P&M segment revenue more than offset the reduced contributions from both oilfield services (OS) and integrated corrosion solution (ICS) segments, effectively increasing 2Q23 group revenue by 49% to RM188.1 million from RM126.3 million in the previous year.

For the six months ended June 30, 2023 (1H23), the group’s net profit rose 14% to RM18.9 million from RM16.6 million in the previous year, while revenue increased 36% to RM311.5 million from RM229.1 million.

Its CEO, Rao Abdullah, expressed optimism about the year ahead, especially in the oil and gas sector, and highlighted the recent success in securing new contracts for their solid control business with a total estimated contract value of RM64.0 million.

The P&M segment’s revenue in 1H23 reached RM253 million, accounting for 81% of the total group revenue of RM311.5 million.

The OS segment reported a decline in revenue by 9% in 2Q23 due to lower business activities, resulting in a segment profit drop of 36%. Meanwhile, the ICS segment experienced lower revenue and incurred a loss.

Deleum’s financial position remains robust, with a net cash position of RM222.8 million, exceeding total borrowings of RM2.8 million. 

The company’s order book stands at RM537.9 million, consisting mostly of works and equipment to be delivered within the next 12 months. –TMR