Friday 29 Mar 2024
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KUALA LUMPUR (May 20): Deleum Bhd’s net profit fell 15.6% to RM8.2 million in the first quarter ended March 31, 2015, from RM9.8 million in the previous corresponding quarter, although its quarterly revenue jumped 34% to RM135.9 million, from RM101.4 million previously.

In a statement, Deleum (fundamental: 1.7; valuation: 2.1) said the lower profit was due to lower contributions from its oilfield services segment and maintenance, repair and overhaul (MRO) segment.

However, it said the power and machinery segment remains the key contributor to the revenue contribution and pre-tax profit of the group.

“The major oil and gas players in the country are observed to be cutting back and/or deferring capital and operating expenditures.  

“This reduced spending trend had impacted Deleum in the first quarter and we expect this trend to continue in the coming quarters,” said Deleum group managing director Nan Yusri Nan Rahimy, on prospects ahead.

Deleum's share price fell two sen or 1.3% to RM1.58 today, giving it a market capitalisation of RM632 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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