- Group pre-tax profit up 8.1% to RM32.1 million for financial year ended 31 December 2021
- Second interim single tier dividend of 1.20 sen per share will be payable on 30 March 2022 to shareholders
KUALA LUMPUR, 23 FEBRUARY 2022 - Deleum Berhad (“Deleum” or the “Group”), a provider of a diverse range of supporting specialised products and services to the oil and gas industry, posted an 8.1% increase in pre-tax profit to RM32.1million for the year ended 31 December 2021 ("FY2021”).
This was despite a 4.9% lower revenue at RM558.4 million from RM587.4 million in the previous year.
The improvement in results was attributable to lower impairment charges on the operating assets, and higher share of results of a joint venture and associates.
The Group generated positive cash inflow of RM57.5 million from its operating activities resulting in a strong cash balance of RM192.7 million at the end of the financial year under review.
The Group has declared a second interim single tier dividend of 1.20 sen per share and it will be payable on 30 March 2022. This brings the total dividend declared for FY2021 to 2.20 sen per share or RM8.8 million and a dividend pay-out of 51.8%, in line with its dividend policy.
Power and Machinery (“P&M”)
The P&M segment turned in a 6.2% increase in revenue to RM391.0 million in FY2021. However, pre-tax profits fell by 10.8% to RM42.3 million due to lower contribution from valves and flow regulators, other ancillary services and third-party sales.
Oilfield Services (“OS”)
The OS segment reported a 4.8% fall in revenue to RM104.2 million in FY2021, but its pre-tax loss was 29.3% lower than the previous year at RM15.4 million. This was due to lower impairment charges on its operating assets at RM3.2 million against RM15.1 million recorded in the previous year.
Integrated Corrosion Solution (“ICS”)
Revenue of the ICS segment declined by 42.8% to RM62.6 million in FY2021 as a result of decreased maintenance service activities of its Maintenance, Construction and Modification operations.
The adverse change in sales mix together with downward pressure on project margins and provisions and write-offs on slow-moving or obsolete stocks contributed to the segment’s 21.3% lower profitability of RM3.3 million in the financial year under review.
With the nation’s vaccination progress approaching 80% in early February this year, the country is slowly embracing the notion of living with COVID-19 under the new normal. All sectors within the Malaysian economy are operating at almost similar pre-COVID-19 conditions albeit with strict adherence to the Standard Operating Procedures set by the authorities.
The recovery of the Oil and Gas sector is more visible now and the increasing demand for the commodity with the capital discipline exercised by oil producers is expected to keep the commodity price at a stable level. The increase in global rig count is expected to cascade to Asia and Malaysia especially.
Deleum expects to see a stability within the Group for the financial year ending 31 December 2022 as business activities increase gradually since the start of the year. With the business environment slowly recovering, Deleum will seek opportunities to identify and establish new business prospects to further strengthen the performance of the Group as the market fully recovers and to promote long term sustainability.
About Deleum Bhd
Deleum Berhad is an investment holding company and through its subsidiaries, provides a diverse range of supporting specialised products and services to the oil and gas industry, particularly in the exploration and production sector. Its range of products and services is distinguished according to its three (3) core business segments – Power and Machinery, Oilfield Services and Integrated Corrosion Solutions. Deleum is listed on the Main Market of Bursa Malaysia.