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Deleum Ends FY23 With Steady Financial Performance, With Net Profit Rising Modestly To RM45.7mil

KUALA LUMPUR: Leading oil and gas (O&G) services provider Deleum Bhd posted a net profit of RM45.7 million for the financial year ended December 31, 2023 (FY23) from RM 42.1 million last year.

Deleum Bhd group chief executive officer Rao Abdullah said the company’s strategic initiatives yielded another year of solid financial performance.

The net profit increased marginally due to higher income tax expenses and non-controlling interests.

The company’s revenue increased 13.5 per cent in FY23 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.

Pre-tax profit grew 25.1 per cent to RM84.9 million for FY23 from RM67.9 million previously, in tandem with an increase in group revenue.

Group chief executive officer Rao Abdullah said the company’s strategic initiatives yielded another year of solid financial performance.

“We have plans lined up for FY24 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 greater success,” he said in a statement.

Alongside the sturdy financial performance, the company declared a second interim single-tier dividend of 3.70 sen per share in respect of FY23, payable on March 29, 2024.

With the first interim single-tier dividend of 2.00 sen paid on September 29,  2023, Deleum declared a total dividend of 5.70 sen per share for FY23.

A dividend payout of RM22.9 million represents 50.0 per cent of FY23 net profit.

Deleum has maintained a strong balance sheet and continues to achieve healthy sales performance to power its core businesses.

As of FY23, Deleum’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 December 31, 2022, respectively.

Shareholders’ equity increased to RM413.4 million as of December 31, 2023, up from RM388.8 million as of December 31, 2022.

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

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