Friday 29 Mar 2024
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KUALA LUMPUR (Nov 17): Deluem Bhd saw its net profit for the third quarter ended Sept 30, 2014 (3QFY14) grew 17.3% to RM16.83 million from RM14.35 million a year ago.

Earnings per share (EPS) expanded to 4.21 sen from 3.59 sen previously.

The company attributed the improved net profit to the higher contributions from the power and machinery and oilfield services segments.

Revenue for the quarter surged 73% to RM188.32 million from RM108.8 million a year earlier.

For the nine months ended Sept 30, Deleum's net profit up 21.5% to RM42.53 million from RM34.99 million last corresponding cumulative period, while the revenue jumped 47.5% to RM453.88 million from RM307.79 million a year ago.

The power and machinery segment and oilfield services segment are the main drivers attributed to better earnings, it said.

In a statement today, Deleum said its power and machinery segment recorded an increase of RM5.1 million or 24.4%, bringing in higher segment results of RM26.2 million in the current quarter.

"The improved results was mainly attributable to retrofit projects consisting of Gas Turbine Integrity and Rehabilitation (GATIR) under a Long Term Service Agreement which was secured in last quarter of 2013," Deleum said.

In line with the commendable increase in revenue, Deleum said its oilfield services segment only RM2.5 million higher due to increased operating expenses of RM3.6 million to support the higher level of activities and additional finance expenses incurred on account of the capital expenditures incurred on slickline related equipment.

For its maintenance, repair and overhaul segment, meanwhile recorded a loss of RM1.1 million on a stronger revenue of RM5.99 million due to weaker margins and higher operating expenses.

Deleum’s Group Managing Director Nan Yusri Nan Rahimy said the downward pressure on oil price is expected to continue. "And this trend is having an effect on the level of activities of the oil and gas producers and contractors in Malaysia," he said.

“Nevertheless, we do not expect these developments to materially affect the level of activities of our group for the financial year ending Dec 31, 2014 but we continue to remain cautious,” he added.

The stock fell five sen or 2.87% to RM1.69, bringing its market capitalisation to RM676 million.

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