• 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.

Deleum Berhad
- Deleum Services Sdn Bhd
- Deleum Technology Solutions Sdn Bhd

• Net profit more than doubles to RM25.1 million in 3Q24, achieving new record high quarterly net profit since listing
• Strong OIS segment growth supports record results; new contract wins strengthen future performance

KUALA LUMPUR, MALAYSIA 25 NOVEMBER 2024 – Leading oil & gas (O&G) services provider Deleum Berhad’s (Deleum, the Group, 迪隆, Bloomberg: DLUM MK) profit before tax (PBT) increased 91.7% to RM48.6 million in the third quarter ended 30 September 2024 (3Q24), from RM25.3 million previously.

Consequently, net profit for the Group more than doubled to RM25.1 million in 3Q24, from RM12.2 million in the same period last year, marking Deleum’s highest quarterly net profit since its listing on Bursa Malaysia. The performance was due to the improved profit margin for the Power and Machinery (P&M) segment and the continued positive momentum of the Oilfield Integrated Services (OIS) segment.

Group revenue for 3Q24 increased by 11.3% to RM269.2 million from RM241.8 million in the previous year’s corresponding quarter, driven by a 74.3% surge in OIS revenue to RM50.4 million, while P&M revenue sustained at RM218.7 million, 2.8% higher year-on-year.

The OIS segment has shown an upward trajectory throughout the year, with robust growth driven by increased activities across several key service areas, including slickline services, asset-integrated solutions, specialty chemicals and well stimulation, solid control services, as well as Maintenance, Construction, and Modification (MCM) projects.

The Group has recently been awarded two significant contracts for MCM projects, contributing to a major addition to the OIS segment’s order book. These new wins are expected to not only enhance the segment’s performance but also contribute to the Group’s overall financial performance in the coming years.

For the nine months ended 30 September 2024 (9M24), the group net profit jumped 82.5% to RM56.7 million from RM31.1 million previously, on the back of revenue growing by 18.7% to RM656.5 million from RM553.3 million previously.

“We continue to see our financial performance driven by growth across both our segments, especially in the OIS segment. We are excited about the two new contract wins in the OIS segment, which we believe will propel the Group to further heights. While we have seen progressive growth in the earlier quarters, we anticipate a weaker fourth quarter. However, we expect to finish the year strong. With our focus to broaden our product lines and establish a strong regional presence in the industry, we continue to explore opportunities across our segments. Our goal is to deliver enhanced shareholders’ returns.” Rao Abdullah Group Chief Executive Officer, Deleum Berhad

Power and Machinery (P&M) Segment

In 3Q24, revenue from the P&M segment edged up by 2.8% to RM218.7 million from RM212.8 million in the previous year’s corresponding quarter, largely due to higher sales in turbine parts and repairs, control and safety valves and flow regulator services, as well as retrofit projects. The growth contributed to an increase of 43.9% in PBT to RM44.9 million from RM31.2 million in the same period last year.

The segment maintained strong momentum throughout the nine months ended 30 September 2024 (9M24), with revenue climbing to RM524.8 million and PBT rising to RM97.3 million, as compared to RM465.7 million and RM64.9 million, respectively, in the previous year.

Oilfield Integrated Services (OIS) Segment

Building on the momentum from 2Q24, the OIS segment delivered strong performance in 3Q24, with revenue increasing by 74.3% to RM50.4 million from RM28.9 million in the prior year. This growth was driven by higher business activities in slickline services in East Malaysia, asset integrated solution services, specialty chemicals and well stimulation services, solid control services, as well as MCM projects. The stronger revenue in 3Q24 enabled the segment to achieve sequential profitability in both 2Q24 and 3Q24, which recorded a PBT of RM5.5 million from a loss of RM5.7 million in the same quarter last year.

For 9M24, the OIS segment’s revenue grew by 50.6% to RM131.3 million from RM87.2 million in the previous year. Mirroring the quarterly results, the segment posted a PBT of RM9.0 million in 9M24, as compared to a loss of RM7.2 million in 9M23. The Group’s cash and bank balances, together with the placements of funds in investment securities, remained nearly unchanged at RM 210.4 million as at the end of the third quarter of 2024, compared to 31 December 2023. Shareholders’ equity increased to RM440.9 million as at 30 September 2024 from RM413.4 million at the end of 2023. Currently, Deleum’s order book remains robust at RM1.4 billion, with the majority of works and equipment scheduled for delivery 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, Oilfield Integrated Services. Deleum is listed on the Main Market of Bursa Malaysia.

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Gold Award in the Energy Sector and the Silver Award for Most Consistent ESG Performer Over Five Years.

41st among the Top 50 public-listed companies at the National Corporate Governance & Sustainability Awards (NACGSA) 2024.

Deleum Services Sdn. Bhd.

Deleum Technology Solutions Sdn. Bhd.

Deleum Oilfield Services Sdn. Bhd.

• Signs two separate agreements with Paradigm Technology Services B.V. and LatConnect 60 Ltd, paving way for innovation and collaboration

KUALA LUMPUR, 1 MARCH  2024 - Leading oil & gas (O&G) services provider Deleum Berhad (“Deleum” or the “Group”), through its wholly owned subsidiary Deleum Oilfield Services Sdn Bhd, has signed two separate agreements during the Offshore Technology Conference Asia 2024 held at Kuala Lumpur Convention Centre on 29 February 2024, reiterating the Group’s aim to strengthen its technological capabilities and enhance sustainability in the Oilfield Services (OS) segment.

The event marked key partnership milestones with Paradigm Technology Services B.V. (Paradigm Technology) and LatConnect 60 Ltd, (LatConnect 60), strengthening Deleum's portfolio and its contribution for growth towards the industry progress in implementing environmental initiatives.

The first agreement with Paradigm Technology is poised to revolutionize traditional slickline operations through digitalisation of conventional slickline operations, as it introduces cost-efficient solutions to address oil well challenges, elevating operational efficiency and productivity within the OS operations, bringing enhanced value to customers.

Paradigm Technology’s innovative offerings, including the fully coated slickline and bi-directional communication system named “Slick-E-Line” and “ParaComm”, along with accompanying software, is intended to transform industry standards.

Meanwhile, in the second agreement, Deleum seeks to further enhance its existing relationship with LatConnect 60 to promote eMission60, a methane emissions monitoring solution leveraging satellite data analytics. The state-of-the-art technology delivers precise methane monitoring, enabling organisations to improve the measurement and control of emissions to meet sustainability objectives aligned with international environmental efforts.

Deleum and LatConnect 60 will expand their current partnership, which now includes the promotion of data leasing from Lat Connect 60’s high-resolution methane monitoring satellites, as they are now being developed in Australia. Both will jointly be exploring opportunities to collaborate with major international oil and gas services firms to promote data leasing services globally.

“These strategic collaborations signify our dedication to integrating innovative solutions that will not only optimise operations but also minimise environmental impact.

With Paradigm Technology, we are ushering in a new era of efficiency in slickline operations. Meanwhile, by creating ways to more accurately measure and monitor methane emissions, our partnership with LatConnect 60 demonstrates our dedication to environmental care.

We are excited to collaborate with Paradigm Technology and LatConnect 60, as these agreements reinforce our commitment to innovation and sustainability for the industry. Together, we are participating in the efforts of shaping a more sustainable future for the oil and gas industry.” - Rao Abdullah Group Chief Executive Officer, Deleum Berhad

Deleum has been honoured with the prestigious Gold Award in the Energy sector of Equities category at The Edge Malaysia ESG Awards 2023, held on 6 November 2023. This recognition highlights the Group’s unwavering commitment to Environmental, Social, and Governance (ESG) excellence.

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

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