- Resilient topline performance supported by contributions from both core segments, despite a softer margin mix within the Power & Machinery (P&M) segment
- Healthy orderbook of RM2.4 billion, continues to underpin the Group’s outlook
Kuala Lumpur, Malaysia, 28 May 2025 – Leading oil & gas (O&G) services provider Deleum Berhad (Deleum, the Group, 迪隆, Bloomberg: DLUM MK) recorded a pre-tax profit of RM17.8 million for the first quarter ended 31 March 2026 (1Q26), compared with RM28.3 million in the corresponding quarter last year, mainly attributable to changes in sales mix and margin contribution. The ongoing crisis in the Middle East has also impacted the Oil and Gas services industry, including Deleum.
The Group continued to deliver resilient topline performance, with revenue increasing to RM184.9 million in 1Q26 from RM179.4 million a year earlier, supported by higher contributions from both its P&M and Oilfield Integrated Services (OIS) segments.As at 31 March 2026, the Group maintained a healthy orderbook of approximately RM2.4 billion and a tender book of RM888.1 million, providing strong earnings visibility and supporting the Group’s positive outlook moving forward.
“Although 1Q26 moderated against the exceptionally strong corresponding quarter last year, we expect the Group’s performance to progressively improve in the coming quarters, supported by continued momentum within the OIS segment and the execution of projects from our healthy orderbook. Overall, we remain cautiously optimistic on the Group’s outlook for FY2026, underpinned by resilient demand for operational expenditure related services, improving operational activities, and continued contributions from both our P&M and OIS segments.”
Rao Abdullah
Group Chief Executive Officer, Deleum Berhad
Power and Machinery (P&M) Segment
The P&M segment recorded a slight increase in revenue to RM136.6 million in 1Q26 from RM132.7 million in the corresponding period last year. The improvement was mainly driven by higher exchange engine sales, stronger retrofit project activities, as well as maiden revenue contribution from PT OSA.
PBT for the segment stood at RM14.8 million in 1Q26, compared to RM28.5 million in the corresponding quarter last year, primarily due to lower contributions from higher-margin control and safety valves, as well as flow regulator services, following delays in a client’s turnaround activities. Performance during the quarter was also impacted by higher fair value losses on forward foreign currency exchange contracts and the absence of net foreign exchange gains recognised in the corresponding quarter last year.
Oilfield Integrated Services (OIS) Segment
The OIS segment continued to deliver encouraging performance in 1Q26, with revenue increasing to RM48.1 million from RM46.6 million recorded in the corresponding quarter last year. The improved performance was mainly attributable to higher business activities from specialty chemical and well stimulation services, slickline services in West Malaysia, as well as asset integrated solution services in East Malaysia.
Correspondingly, segment PBT improved significantly to RM4.5 million in 1Q26 from RM1.9 million in the corresponding quarter last year, supported by stronger operational activities and improved gross profit margins.
The Group continued to maintain a strong financial position, with overall liquidity comprising cash balances and investment securities improving to RM265.2 million as at 31 March 2026, compared to RM242.3 million as at 31 December 2025.
Total borrowings remained low at RM45.8 million, enabling the Group to maintain a strong net cash position and financial flexibility. Shareholders’ equity stood at RM484.1 million from RM496.3 million at the end of the previous financial year. The Group’s solid financial position continues to position it well to pursue strategic growth initiatives, support operational resilience, and capitalise on emerging opportunities.