Deleum pre-tax profit rises 17.8% to RM64.5 million in 1H25   

• Stronger segmental performance and regional expansion drive positive momentum in 1H25 

Kuala Lumpur, Malaysia, 21 August 2025 – Leading oil & gas (O&G) services provider Deleum Berhad (Deleum, the Group, 迪隆, Bloomberg: DLUM MK) reported a higher pre-tax profit of RM64.5 million for the six months ended 30 June 2025 (1H25), marking a 17.8% increase from RM54.8 million in the same period last year. This growth was underpinned by stronger performance across both its business segments.  

Group revenue for 1H25, grew 7.5% year-on-year to RM416.3 million from RM387.3 million previously, driven largely by the contributions from the Oilfield Integrated Services segment (OIS). Net profit edged up to RM32.0 million in 1H25, slightly above RM31.6 million last year. 

The Power and Machinery (P&M) segment continued to be Deleum’s largest revenue contributor, while the OIS segment sustained its growth trajectory, reinforcing the Group’s diversified earnings base. A key highlight in 2Q25 was the successful completion of Deleum’s acquisition of PT OSA Industries Indonesia (OSAII), which has begun contributing to the Group’s top line.   

"We delivered a resilient performance in 1H25 by remaining focused on our core operations and disciplined execution across both business segments. Notably, the OIS segment recorded strong growth, reflecting the positive impact of our restructuring and transformation initiatives. We also made strategic headway in strengthening our regional footprint. Our recent acquisition in Indonesia has begun contributing to the Group's revenue. This development reflects our commitment to sustainable growth and reinforce our vision of positioning Deleum as a competitive force in the Southeast Asian oil and gas landscape."

Rao Abdullah

Group Chief Executive Officer, Deleum

In 2Q25, Deleum’s revenue rose to RM236.9 million, a slight increase from RM225.9 million in the corresponding quarter of 2024, supported by higher contributions from the OIS segment. Pre-tax profit, however, eased 3.4% to RM36.3 million from RM37.5 million, while net profit declined 12.5% year-on-year to RM19.6 million from RM22.4 million. 

Power and Machinery (P&M) Segment

Revenue from the P&M segment declined 6.9% year-on-year to RM164.5 million in 2Q25, from RM176.6 million previously, mainly due to lower contributions from the sale of exchange engines, commission income from mechanical and processes business, turbines parts and repairs sales. As a result, the segment’s profit before tax (PBT) fell 8.6% to RM27.9 million from RM30.6 million in the previous year.  

For 1H25, the P&M segment recorded revenue of RM297.1 million and PBT of RM56.4 million, compared to RM306.1 million and RM52.4 million respectively in the previous period.  

Oilfield Integrated Services (OIS) Segment

The OIS segment delivered a strong performance in 2Q25, with revenue rising 46.9% to RM72.2 million, from RM49.1 million in 2Q24. The increase was spurred by higher business activities from the Maintenance, Construction, and Modification (MCM) projects, along with stronger contributions from specialty chemicals and well stimulation activities. Accordingly, PBT grew 38.7% to RM 9.6 million from RM6.9 million in the previous year.   

The OIS segment’s revenue for 1H25 surged 46.8% to RM118.8 million, up from RM80.9 million in the prior year. PBT more than tripled to RM11.5 million in 1H25 from RM3.5 million previously.   

As at 30 June 2025, the Group maintained a strong net cash position, with cash and bank balances of RM181.3 million, alongside an investment securities fund of RM58.8 million and minimal borrowings of RM41.5 million. Shareholders’ equity increased to RM473.8 million as at 30 June 2025, from RM463.0 million at the end of 2024.  

The combined orderbook for both segments stood at RM1.5 billion as at 30 June 2025.   

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About Deleum Berhad (https://www.deleum.com/)  

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 two core business segments – Power and Machinery and Oilfield Integrated Services. Deleum is listed on the Main Market of Bursa Malaysia.

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Winner of the "Centurion of The Year 2025", "Highest Growth in Profit After Tax Over Three Years" and "Highest Return to Shareholders Over Three Years in the energy sector" on 5 August 2025, at the Edge Malaysia Centurion Club Corporate Awards 2025

About Deleum Berhad  (https://www.deleum.com/)

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 core business segments – Power and Machinery and Oilfield Integrated Services. Deleum is listed on the Main Market of Bursa Malaysia.

Proposed strategic acquisition in Thailand, expanding the Group’s oilfield services business

Kuala Lumpur, Malaysia, [16] June 2025 – In line with its strategic growth plan to drive regional expansion, leading oil & gas (O&G) services provider Deleum Berhad (Deleum, the Group, 迪隆, Bloomberg: DLUM MK) announced today that its indirect subsidiary, Deleum Oilfield Solutions (Thailand) Co., Ltd. (DOST) has entered into a sale and purchase agreement to acquire oilfield services assets and business, which include (i) slickline; (ii) hydraulic workover; and (iii) well head maintenance, from MPC Future Co., Ltd. (MPC) for a total consideration of RM60 million. The proposed acquisition represents a strategic opportunity for Deleum to expand its portfolio and services offering in Thailand.

The purchase consideration of RM60 million would be satisfied through a combination of cash payment and issuance of new shares in DOST, resulting in Deleum being 49.93% and MPC being a 48.34% shareholders of DOST post transaction. Upon completion, DOST remains as an indirectly owned subsidiary of the Deleum.

The proposed acquisition is aligned with Deleum’s strategy to strengthen its regional footprint and enhance its service offerings beyond Malaysia. Barring unforeseen circumstances and upon satisfaction of the identified conditions precedent, the acquisition is expected to be completed within the second half of 2025.

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About Deleum Berhad (https://www.deleum.com/)

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 two core business segments – Power and Machinery and Oilfield Integrated Services. Deleum is listed on the Main Market of Bursa Malaysia.

• Achieves record earnings on robust contributions from P&M and OIS segments

• Declares second interim dividend of 5.30 sen per share; bringing total dividend to 9.30 sen per share in respect of FY2024 or 50.4% dividend payout

Kuala Lumpur, Malaysia, 28 February 2025 – Leading oil & gas (O&G) services provider Deleum Berhad (Deleum, the Group, 迪隆, Bloomberg: DLUM MK) hits its highest annual net profit of RM74.2 million since its inception for the financial year ended 31 December 2024 (FY2024), a 62.1% jump from RM45.7 million in the previous year.

The record-breaking performance was mainly driven by steady growth in the Power and Machinery (P&M) segment and a notable turnaround in the Oilfield Integrated Services (OIS) segment, which swung into profit during the year.

In tandem with the strong performance from both segments, Deleum also saw its profit before tax (PBT) surge by 60.4% to RM136.2 million in FY2024 from RM84.9 million previously, while group revenue increased by 14.6% to RM907.5 million from RM792.0 million last year. 

“I would like to congratulate my team for a job well done and the Board for the invaluable guidance given during the year, which highlights the effectiveness of our transformation strategy in positioning ourselves as a value-driven and growth-oriented company. Our focus on sustainable-margin businesses, enhancing operational efficiency, and optimizing resource allocation have been instrumental in achieving this performance. As we move into 2025, we are optimistic about the future. With long-term contracts in place and a clear strategic roadmap, we are well-positioned to continue scaling, driving strong results, and paving the way for further expansion in the years ahead.”  Rao Abdullah Group Chief Executive Officer

For the fourth quarter ended 31 December 2024 (4Q24), net profit grew 19.1% to RM17.5 million from RM14.7 million in the same period last year. PBT rose 26.6% to RM32.8 million from RM26.0 million previously, as group revenue edged up 5.1% to RM250.9 million from RM238.7 million last year.

Alongside the commendable financial performance, the Group declared a second interim single-tier dividend of 5.30 sen per share in respect of FY2024, payable on 28 March 2025. Together with the first interim single-tier dividend of 4.00 sen per share paid on 30 September 2024, the total dividends for FY2024 amount to 9.30 sen per share, representing a payout of RM37.3 million or 50.4% of net profit, in line with the Group’s dividend policy. Notably, this marks Deleum’s highest dividend payout since its listing in 2007.

Power and Machinery (P&M) Segment

In 4Q24, revenue from the P&M segment decreased 5.1% to RM191.9 million from RM202.2 million in the previous year’s corresponding quarter, attributed to lower sales of exchange engines. However, segment PBT increased 11.1% to RM38.3 million from RM34.5 million previously, supported by improved gross profit margins.

Due to higher activities in the segment, P&M segment revenue was up by 7.3% to RM716.7 million in FY2024 from RM667.9 million in the previous year, while PBT grew by 36.5% to RM135.6 million from RM99.3 million last year.

Oilfield Integrated Services (OIS) Segment

The OIS segment saw 4Q24 revenue jump 62.1% to RM58.6 million from RM36.1 million in the same quarter last year, primarily due to higher business activities from slickline and asset integrated solution services in East Malaysia, specialty chemicals and well stimulations services, as well as maintenance, construction and modification (MCM) projects. Stronger revenue in 4Q24 helped narrow the segment’s loss before tax to RM4.8 million, compared to a loss of RM8.7 million previously.

For FY2024, the OIS segment’s revenue climbed 54.0% to RM189.9 million from RM123.3 million in the previous year. PBT for the segment rebounded to RM4.2 million, a significant turnaround from the loss of RM15.9 million in FY2023. The recovery was largely driven by higher gross profit and reversal of impairment on trade receivables.

As at FY2024, the Group’s net cash position remained robust, with cash and bank balances of RM199.3 million and total borrowings at RM15.1 million. Shareholders’ equity increased to RM463.0 million as at 31 December 2024 from RM413.4 million at the end of 2023.

The Group’s firm orderbook stands at RM1.6 billion, which consists of works and equipment mostly to be delivered within the next 24 months.

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About Deleum Bhd (https://www.deleum.com/) 

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 two core business segments – Power and Machinery and Oilfield Integrated Services. Deleum is listed on the Main Market of Bursa Malaysia.

Kathirithamby Sivasankar

Alternate Director to Datuk Vivekananthan a/l M.V. Nathan

Mr. Kathirithamby Sivasankar (Australian, aged 74, Male) has been appointed as an Alternate Director to Datuk Vivekananthan a/l M.V. Nathan on 2 January 2025.

Mr. Siva holds a Bachelor of Commerce degree from the University of Melbourne. He is both a Chartered Accountant and a Certified Public Accountant, with over 25 years of global leadership experience in risk management within publicly listed and multinational companies. He is renowned for developing robust risk management models that enhance shareholder value and strengthen corporate governance.

During his 15-year tenure with Ernst & Young, spanning Australia, Asia, and the United Kingdom, Mr. Siva gained extensive expertise in audit, management consultancy, change management, and business recovery. He is recognised as an industry leader in Business Continuity Planning, equipping companies to proactively manage crises, build resilience, and safeguard earnings and brand value.

Currently, Mr. Siva serves as a Non-Executive Director on the board of an Australian non-governmental organisation focused on healthcare. He takes pride in his role as a public policy advocate, influencing political, economic, and social reforms to promote equity and social justice.

• USD 7 million (RM31.3 million) acquisition strengthens Deleum’s  market coverage in total valve management solutions  

• Enlarges capacity to meet demand from ongoing and planned investments in oil and gas infrastructure, as well as increased energy demands on the back of accelerating economies in South East Asia  
   

KUALA LUMPUR, 5 December 2024 – Leading oil and gas services company Deleum Berhad (“Deleum” or “the Group”) strengthened its capacity to capture the rising demand in valve solutions with the acquisition of a 70% stake in Indonesia based PT OSA Industries Indonesia (“PT OSA”) for USD 7 million (equivalent to RM31.3 million).  

Deleum’s wholly-owned subsidiary Deleum Services Sdn Bhd (“DSSB”) today signed a Share Purchase Agreement with OSA Industries Pte Ltd (“Vendor”) to acquire the majority stake in PT OSA, with DSSB represented by Deleum’s Group Chief Executive Officer Rao Abdullah, and the Vendor represented by its Director, Ong Siow Aik. The balance 30% stake in PT OSA remains being held by the existing Indonesian shareholder. 

PT OSA, founded in Indonesia in 1994 by Ong Siow Aik, is a supplier of valves and valve maintenance services in Indonesia, including for the oil and gas industry. Since 2017, it has been the sole channel partner for Baker Hughes valves, such as safety and control valves, ball valves and actuators. PT OSA serves energy majors through its team of 72-strong, supported by its well-equipped service facility in Cikarang, Indonesia.  

The acquisition would complement and fortify the existing technical expertise and capabilities of Deleum’s valve management segment through DSSB’s subsidiary Penaga Dresser Sdn Bhd. It is the sole channel partner for Baker Hughes valves for the oil and gas, and energy industries in Malaysia. The strategic location of service facilities in Terengganu, Johor, Sabah and Sarawak positions Penaga Dresser favourably to provide seamless on- to-offshore services to prominent international customers and principals.  

Speaking at the signing ceremony today, Deleum Group CEO Rao Abdullah said that following the signing of the Heads of Agreement in March this year, Deleum’s acquisition of a majority 70% stake in PT OSA today unlocked new opportunities for the combined entity.  

Rao said: “With an enlarged and comprehensive pool of strong technical expertise in total valve management solutions, I have no doubt that our collective experience  will place us in good stead to enhance service quality for our customers.”   

“For our employees, this acquisition would open up opportunities for talent development , paving the way for a fuller and richer scope of cross-border experience in valve solutions.” 

“Our expanded team and established presence across the two countries present the invaluable opportunity not only to tap into the dynamic valves market in South East Asia, but also extend our coverage beyond existing product lines. The ongoing and planned investments in oil and gas infrastructure, coupled with increased energy demands on the back of accelerating economies, augur well for the prospects of the valve sector in the region.” 

“I am certain that the coming together of two leadership teams in the respective countries is a potent combination that would be a positive catalyst for all, in the years to come.” 

The purchase consideration of USD 7 million would be fulfilled via internally-generated funds and bank borrowings. As part of the exercise, PT OSA will provide profit guarantee of USD2.7 million (equivalent to RM12.1 million) cumulatively across financial years ending 31 December 2024 and 2025. Barring unforeseen circumstances and upon satisfaction of the identified conditions precedent, the acquisition is expected to be completed within the first half of 2025.  

Rao added that Deleum had undertaken a balanced approach to growth via organic and inorganic means.  

Organically, Deleum had enlarged its revenue base from RM587 million to RM792 million from the financial years ended 31 December 2020 to 2023. More significantly, operating profits catapulted from RM27 million to nearly RM80 million in the same timeframe.  

Notably, Deleum’s stringent financial discipline in maintaining a strong balance sheet and growth allowed the Group to deliver on its dividend policy.  

Rao elaborated, “Our robust financial position has enabled us to earnestly explore inorganic means of business expansion to catapult our growth, increase our presence, and enhance our suite of solutions to better serve the energy majors.” 

“Being true to our ethos of expansion, supported by our strong financial standing and mindful of the tremendous opportunities in South East Asia, Deleum has sought potential targets for merger and acquisition to continue our journey of growth. We seek successful entities whose core values are aligned with ours: upholding excellence, innovation, and exemplary governance.”  

“We at Deleum are steadfast in pursuing expansion, propelling growth and priming ourselves for greater accomplishments, as we continue on our growth trajectory,” concluded Rao.  

 

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About Deleum Bhd (https://www.deleum.com/) 

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 two core business segments – Power and Machinery and Oilfield Integrated Services. Deleum is listed on the Main Market of Bursa Malaysia.