Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 22): Deleum Bhd’s net profit in the second quarter ended June 30, 2019 (2QFY19) fell 5.57% to RM8.66 million from RM9.17 million on weaker results from both its power and machinery and oilfield services segments.

Quarterly earnings per share slid to 2.16 sen from 2.29 sen in 2QFY18.

However, it declared a higher dividend of 1.4 sen per share for the first interim period in FY19, from 1.25 sen per share last year.

Deleum’s pre-tax profit in the period was 0.48% lower at RM13.28 million from RM13.34 million previously, no thanks to higher costs and other operating losses, which offset higher share of results of associates.

Revenue, however, jumped 52.31% to RM212.16 million from RM139.29 million, thanks to higher contribution across all segments with strong support by the Integrated Corrosion Solution segment mainly from its Maintenance, Construction and Modification (MCM) contract.

For the half-year ended June 30, 2019 (6MFY19), Deleum’s net profit rose 8.51% to RM11.48 million from RM10.58 million last year, as higher results of asssociates offset the higher administrative expenses in the period.

“The higher share of results is due to lower direct operating expenditure incurred and higher interest income earned in the current period,” it said.

Note that gross profit was flattish year-on-year despite revenue rising 37.07% to RM339.66 million from RM247.8 million in 6MFY18.

On prospects, Deleum said the power and machinery segment — which contributed over 90% of the group’s profit — will remain a key contributor in the group.

Meanwhile the oilfield services segment is also expected to improve its performance if current activity levels sustain, while Deleum is also working to sustain the turnaround achieved by the integrated corrosion solution segment in the quarter.

Shares of Deleum lost one sen or 1.2% to close near its two-year low of 82 sen, giving it a market capitalisation of RM329.27 million.

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