Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 22): Deleum Bhd’s net profit for the second quarter ended June 30, 2017 fell 8.66% to RM6.7 million, from RM7.34 million a year earlier, on weaker performance from its power and machinery and integrated corrosion solution segments.

Earnings per share fell to 1.67 from 1.83, the group said in a stock exchange filing.

Deleum said adverse impact from exchange rate fluctuations had also dampened profit, although the decline was offset by improved contribution from the oilfield services segment, higher share of results from an associate and joint venture, as well as lower borrowings.

Quarterly revenue fell to RM106.46 million from RM116.24 million in the previous corresponding quarter on lower segmental contribution, which the group attributed to uncertainty and subdued activity in the global oil and gas market.

For the first half of the year, Deleum saw its net profit fall 39.67%  to RM8.02 million from RM13.29 million a year ago. This was led by lower contributions from the power and machinery and oilfield services segments, but offset by better performance from the integrated corrosion solutions segment.

Revenue for the six months was down 26.74% to RM196.42 million from RM268.12 million previously as contribution fell across all reportable segments, a result of lower business activity due to volatile oil prices, geopolitical concerns, and elevated inventories.

Looking ahead, Deleum forecasts continued downward risks to its business activities as producers tighten investments and expenditure on low global oil prices.

“Work on hand and potential work orders based on outstanding tenders have the potential to sustain current levels of business activities but margins are expected to be tight,” it said.

Deleum’s share price closed unchanged at 77 sen today, giving the group a market capitalisation of RM316.15 million. The counter had recently hit a six-year low of 76 sen on Aug 15.

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