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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• Group ends FY2023 with steady financial performance, with net profit rising modestly to RM45.7 million
• Declares second interim single tier dividend of 3.70 sen per share; bringing total dividend to 5.70 sen per share in respect of FY2023 or 50.0% dividend payout

KUALA LUMPUR, 26 FEBRUARY  2024 - Leading oil & gas (O&G) services provider Deleum Berhad (“Deleum” or the “Group”),grew 25.1% in the Group’s pre-tax profit to RM84.9 million for the financial year ended 31 December 2023 (FY2023) from RM67.9 million previously, in tandem with an increase in group revenue.

The Group’s revenue increased 13.5% in FY2023 to RM792.0 million from RM698.0 million the previous year, driven primarily by a strong revenue contribution from the Power and Machinery segment, which generated RM668.0 million for the year.

The Group ended FY2023 with a steady financial performance, with net profit rising modestly to RM45.7 million from RM 42.1 million last year. Despite higher revenue and pre-tax profit, net profit increased marginally due to higher income tax expenses and non-controlling interests.

“As we reflect on our financial performance for the year 2023, I am pleased to announce that our strategic initiatives have yielded yet another year of solid financial performance.

Looking ahead we have plans lined up for FY2024 to accelerate growth and strengthen our position in the industry. Our commitment to fostering growth and creating value for all stakeholders is unchanged. We are committed to capitalising on new opportunities, optimising our resources, and encouraging innovation to propel Deleum to even greater success.” - Rao Abdullah Group Chief Executive Officer, Deleum Berhad

Alongside the sturdy financial performance, the Group declared a second interim single tier dividend of 3.70 sen per share in respect of FY2023, payable on 29 March 2024. Together with the first interim single tier dividend of 2.00 sen paid on 29 September 2023, Deleum declared a total dividend of 5.70 sen per share for FY2023. A dividend payout of RM22.9 million represents 50.0% of FY2023 net profit.

Deleum has maintained a strong balance sheet and continues to achieve healthy sales performance to power its core businesses. As at FY2023, the Group’s net cash position has further strengthened, with cash and bank balances of RM215.9 million exceeding total borrowings of RM2.4 million, compared to RM178.0 million and RM8.8 million on 31 December 2022 respectively. Shareholders’ equity increased to RM413.4 million as of 31 December 2023, up from RM388.8 million as of 31 December 2022.

The Group’s firm orderbook currently stands at RM552.6 million, which consists of works and equipment mostly to be delivered within the next 24 months

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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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• Signs HOA for due diligence exercise on an acquisition target in Indonesia 
• Strategic opportunity to strengthen Deleum's regional presence 

KUALA LUMPUR, 4 March 2024 - Leading oil & gas (O&G) services provider Deleum Berhad (“Deleum” or the “Group”), grew 26.2% in the Group’s pre-tax profit to RM25.3 million for the third quarter ended 30 September 2023 (3Q23) from RM20.1 million previously, mainly due to the significant contribution from its Power and Machinery (P&M) segment.

Deleum has entered the HOA with five parties, namely OSA Industries Pte. Ltd. (OSA Industries), PT OSA Industries Indonesia (OSAII), PT OSA Megah Indonesia (PT OSA Megah), as well as Ong Siow Aik, a Singaporean, Erik Aristino and Fenty Herlinda, both Indonesian citizens. The HOA entails all parties to collaborate over a six-month period in facilitating Deleum’s due diligence on OSAII and PT OSA Megah, as well as to negotiate and finalise the definitive agreements for the proposed acquisition.

The HOA signifies Deleum’s strategic direction and commitment to strengthen its regional presence in the region, to create synergies and aims to bolster the Group’s earnings as well as its shareholder value. The proposed acquisition is also  being supported by an international service company with whom both Deleum and OSAII have had a good working relationship over the years.

Through the Group’s subsidiary, Deleum Services Sdn Bhd will acquire 70% of the issued share capital of OSAII held by Ong Siow Aik and OSA Industries for a consideration of USD7.0 million (equivalent to RM33.1 million), representing 70% of the total valuation of USD10.0 million, subject to satisfactory outcome of the due diligence and finalisation of the definitive agreements.

OSAII, established in 1994 in Indonesia, specialises in the repairing, reconditioning, and testing of valves, offering expert solutions to ensure optimal functionality. With a focus on quality and reliability, it also provides a diverse inventory of valves and supplies, catering to various industry needs. With its headquarters located in West Java, Indonesia, OSAII has built a reputable presence in the region.

“Growing our presence in Indonesia is our strategic goal, given the enormous potential for our business growth in this market. This HOA represents the critical first step towards realising our mission. We are committed to using this cooperation as a springboard for our larger goal, capitalising on the numerous opportunities that Indonesian market offers us.

As we proceed with due diligence and negotiation, we remain focused on delivering sustainable outcomes that align with our vision of being a leading player in the region.” - Rao Abdullah Group Chief Executive Officer, Deleum Berhad

Further information on the transaction, including the key terms of the definitive agreements and other information on OSAII, will be made available upon the execution of the definitive agreements.

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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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• Buoyed by accelerated exploration and production activities, group revenue rose 71.3% in 3Q23 to RM241.8 million.
• Group net profit slightly increased by 3.5% to RM12.2 million on higher expenses.
• Intensifying efforts to grow contributions from Oilfield Services and Integrated Corrosion Solution segments.

KUALA LUMPUR, 28 NOVEMBER  2023 - Leading oil & gas (O&G) services provider Deleum Berhad (“Deleum” or the “Group”), grew 26.2% in the Group’s pre-tax profit to RM25.3 million for the third quarter ended 30 September 2023 (3Q23) from RM20.1 million previously, mainly due to the significant contribution from its Power and Machinery (P&M) segment.

The Group’s revenue rose 71.3% in 3Q23 to RM241.8 million from RM141.2 million in the previous year’s corresponding quarter, buoyed by accelerated exploration and production activities. Despite the strong growth in revenue, the Group’s net profit for 3Q23 slightly increased by 3.5% to RM12.2 million from RM11.8 million on account of higher operating expenses incurred with foreign exchange loss and fair value loss on forward foreign currency exchange contracts as compared to a fair value gain recorded in 3Q22.

For the nine months ended 30 September 2023 (9M23), the Group’s pre-tax profit increased by 32.3% to RM59.0 million from RM44.6 million previously, while revenue rose 49.4% to RM553.3 million from RM370.3 million a year ago. Subsequently, net profit rose marginally to RM31.1 million from RM28.4 million previously. 

“The third quarter marked another period of improvement in results for Deleum Group, with the total net profit increasing by 9.5%. We are pleased to deliver a steady group financial performance in the current quarter amidst the various challenges in the industry, proving our dedication to deliver quality services to our clients.

We will continue to intensify our efforts in increasing contributions from all our segment’s products and services especially in the newly established business line of Solid Controls. Throughout the year, we successfully obtained an estimated aggregate contract value of RM107.0 million in our solid control contract awards for the OS segment, bringing our OS order book to RM189.0 million as at 30 September 2023.

As the industry is experiencing inflationary pressures and rise in costs of materials and manpower; the Group’s focus will be to develop a more robust pricing strategy for our future contracts to ensure we maintain profitability for the Group. The Group has also recently agreed with an established international service provider to collaborate in pursuing opportunities in Malaysia jointly paving way for growth and development for the Group to further strengthen and enhance its presence in Malaysia with the support of the said service provider.” Rao Abdullah Group Chief Executive Officer, Deleum Berhad

Deleum has maintained a strong balance sheet and continues to achieve healthy sales performance to power its core businesses. As at the end of 3Q23, the Group’s net cash position has further strengthened, with cash and bank balances of RM230.2 million exceeding total borrowings of RM1.9 million, compared to RM178.0 million and RM8.8 million on 31 December 2022 respectively. Shareholders’ equity increased to RM398.7 million as of 30 September 2023, up from RM388.8 million as of 31 December 2022.

The Group’s sturdy orderbook currently stands at RM449.3 million, which consists of works and equipment mostly to be delivered within the next 24 months. 

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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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