KUALA LUMPUR: Leading oil and gas (O&G) specialist Deleum Bhd posted a net profit of RM11.8 million for the third quarter (Q3) ended 30 September 2022 (FY22) versus a net loss of RM0.6 million previously.
The profit uptrend was on the back of a 2.6 per cent increase in revenue to RM141.2 million during the quarter as the company continued to benefit from the encouraging recovery of spending in the O&G sector.
For the nine months (9M) FY22, net profit rose 335.6 per cent to RM28.4 million from RM6.5 million a year ago, while revenue rose marginally to RM370.3 million from RM366.5 million previously.
All three business segments of the company contributed to the improved profitability, with both oilfield services (OS) and integrated corrosion solution (ICS) segments evidently the main turnaround factors that improved the Deleum's financials in Q3.
At the same time, the power and machinery (P&M) segment continued to maintain its baseline profitability to the company.
Group chief executive officer Rao Abdullah said the company has seen a slow-but-sturdy recovery in spending by the O&G sector.
"Although sector challenges remained for much of the year, with the Russia/Ukraine conflict, supply chain issues and inflationary and rising interest rates pressure, we continued to be focused in supporting our clientele for both their capital expenditure and operation expenditure initiatives.
"Our performance in Q3 FY22 and year-to-date in all the three business segments are the fruition of our team's focus and efforts.
"We will continue to seek opportunities in the region and build our orderbook for our diverse range of products and services that cater to the various nodes in the O&G industry," he said in a statement today.
In terms of balance sheet, Deleum further strengthened its net cash position as at end of Q3 FY22, with cash and bank balances of RM195.7 million far exceeding total borrowings of RM11.8 million.
The improved balance sheet was attributed largely to better working capital management, coupled with positive operating cashflows as a result of the improved profitability.
At at 30 September 2022, shareholders' equity improved by 4.7 per cent to RM375.0 million, compared to RM358.3 million as at 31 December 2021.
To date, Deleum's orderbook stands positively at RM447 million, which consists of works and equipment to be delivered within the next 12 months.