KUALA LUMPUR (Aug 21): Oil and gas services provider Deleum Bhd (KL:DELEUM) posted a 12.4% year-on-year decline in its second-quarter net profit, as its power and machinery segment was weighed down by foreign exchange losses and elevated operating expenses.

The group's net profit for the second quarter ended June 30, 2025 (2QFY2025) dropped to RM19.59 million from RM22.38 million, though revenue grew 4.9% to RM236.88 million from RM225.91 million on stronger contribution from its oilfield integrated services (OIS) segment, its bourse filing showed.

The group declared a first dividend of 4 sen per share, unchanged from the previous year.

For the first half of 2025, Deleum’s net profit edged up 1.2% to RM32 million from RM31.62 million, while revenue climbed 7.5% to RM416.3 million from RM387.32 million.

Group chief executive officer Ramanrao Abdullah said the OIS segment delivered robust growth and margin expansion, reflecting the positive impact of ongoing restructuring and transformation initiatives.

Looking ahead, the group said its acquisition of PT OSA Industries Indonesia (OSAII), completed in the second quarter, has already begun contributing to revenue, marking a promising start to its regional expansion strategy.

With an order book of approximately RM1.5 billion across its power and machinery and OIS segments, and a newly established regional platform via OSAII, Deleum said it is well-positioned to navigate near-term industry challenges and sustain performance in the quarters ahead.

“This development reflects our commitment to sustainable growth and reinforces our vision of positioning Deleum as a competitive force in the Southeast Asian oil and gas landscape,” Ramanrao added.

Deleum's share price closed unchanged at RM1.52 on Thursday, valuing the group at RM610 million. Year to date, the stock has gained 10.1%.