KUALA LUMPUR (Feb 28): Deleum Bhd (KL:DELEUM) closed its financial year ended Dec 31, 2024 (FY2024) with record earnings, driven by steady growth in its power and machinery segment and a notable turnaround in its oilfield integrated services (OIS) segment. 

The oil and gas services provider posted a 62.11% surge in net profit to RM74.16 million for FY2024, from RM45.74 million a year earlier, as revenue rose 14.6% to RM907.48 million from RM791.99 million, according to its bourse filing on Friday. 

This marks Deleum’s highest annual earnings since its listing in 2007.

The company also announced a record dividend payout, declaring a total of 9.3 sen per share for FY2024, surpassing the 5.7 sen per share paid in FY2023. The latest dividend of 5.3 sen per share, declared on Friday, is set for payment to its shareholders on March 28, 2025. 

For 4QFY2024, Deleum’s net profit rose 19.07% to RM17.46 million from RM14.67 million in 4QFY2023, supported by higher business activities in the OIS segment. Revenue for the quarter increased 5.16% to RM250.94 million, from RM238.65 million. 

The OIS segment benefitted from increased activities in slickline services, asset integrated solutions, specialty chemicals and well stimulations; and maintenance, construction & modification (MCM) projects in East Malaysia.

Deleum maintained an optimistic outlook for FY2025, citing resilience in Malaysia’s oil and gas sector, amid sustained upstream activities by major oil players. The company also expects higher plant turnaround activities by a leading domestic oil company, which is expected to boost demand for its MCM services, as well as gas turbine and valve maintenance.

To strengthen its regional presence, Deleum signed a share purchase agreement to acquire a 70% stake in Indonesia-based PT OSA Industries Indonesia for US$7 million (RM31.3 million). This acquisition aims to complement its technical expertise and reinforce its power & machinery segment.

The company’s order book remains robust, supported by a five-year contract from Petronas Carigali Sdn Bhd for the provision of slickline equipment and services for Package A1 in Sarawak, commencing April 16, 2025.

“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,” said Delum group chief executive officer Rao Abdullah in a statement. 

As at 12.30pm on Friday, shares of Deleum were unchanged at RM1.35, giving the company a market capitalisation of RM542.1 million.