KUALA LUMPUR (Nov 19): Oil and gas support service company Deleum Bhd’s third quarter net profit fell 15.6% to RM9.12 million, from RM10.8 million a year earlier, despite the rise in oil prices during the period.

The group, in a statement today, attributed this to lower operating results from all business segments and the unfavourable foreign exchange movements during the quarter.  

Quarterly revenue, however, was up 4.6% to RM175.44 million, from RM167.79 million, the group said in a statement.

The group said its power and machinery segment registered a lower profit of RM10 million, which is an RM3.2 million decrease compared with the year-ago third quarter. The group attributed this to softer demand and flow regulators and lower volumes of turbine related work orders.

Similarly, the oilfield services posted a reduced profit of RM3.6 million, which represents a decrease ofRM 1.9 million due to downward pressure on margins.

The integrated corrosion solution segment saw its profit fall to RM200,000 from RM1.8 million a year earlier, in view of higher operating costs of the sponge jet blasting business in anticipation of securing fresh contracts.

For the nine-month period ended Sept 30, 2018, Deleum recorded a net profit of RM19.69 million compared with RM18.82 million in the previos corresponding period.

Revenue saw an increase of 16.2% to RM423.24 million from RM364.21 million, thanks to the maintenance, construction and modification contracts secured in late 2017.

Deleum expects the last quarter of the year to be marked by downward pressures on margins. It will continue to be an outgoing challenge on the company’s financial performance.

In order to manage this, the group has said it will continue to focus on capability enhancements throughout all business segments.