DELEUM Bhd, a provider of specialised products and services to the oil and gas industry, is expecting a challenging market and operating conditions due to the Covid-19 pandemic.
Chairman Datuk Izham Mahmud said the pandemic continued to disrupt the global supply chain and heralded a global recession exacerbated by the drastic decline in oil prices since January.
“Despite the uncertainty, we will continue to strive towards sustainable value creation and setting our sights on upholding balance for sustainability from our business segments which is the main focus of our operations,” he said in the company’s Annual Report 2019 issued with Bursa Malaysia today.
He said the company would carry on strengthening integration efforts across its business segment by leveraging on its human capital, financial strengths and resources.
“At the same time, we will maintain our focus on managing costs and working capital, conserving free cash to retain our competitiveness whilst continuing to seek out new business opportunities which are synergistic to our current businesses,” he said.
According to the report, Deleum’s net profit for the financial year ended Dec 31, 2019, rose 22% to RM33.15 mil from RM27.17 mil in financial year 2018 while revenue increased by 39.21% to RM868.3 mil from RM623.69 mil.
The report said this was mainly attributed to stronger results from the power and machinery segment, a turnaround in the integrated corrosion solution segment results and a higher share of results from an associate company.
It said the power and machinery segment maintained its position as the biggest revenue generator, contributing 56% of the year’s revenue.
“This was followed by the integrated corrosion solution and oilfield services segments which contributed 27.3% and 16.6% of the revenue, respectively,” it said.
It added that as of Feb 28, 2020, Deleum’s order book stood at some RM2.2 bil and tender book at approximately RM115.7 mil. — April 30, 2020, Bernama
