business

Deleum aims earnings growth from robust global demand for fossil fuel

KUALA LUMPUR: Deleum Bhd will focus on growth in its top and bottom lines, spurred by the projected rise of global capital spending in the oil and gas (O&G) sector, stemming from the robust demand for fossil energy.

The O&G services provider intends to broaden its product and service offerings and regional presence.

Deleum will continue to invest in processes and systems to integrate its services on a seamless and robust platform, increasing the company's capacity to meet the needs of its clients, it said.

Group chief executive officer Rao Abdullah said Deleum is extending its product and service offerings and expanding the company's geographic footprint, particularly in Indonesia and Thailand.

Rao said this would allow Deleum to support better and increase its regional client base as demand grows.

"We are committed to executing our strategic initiatives and effectively leveraging our competitive advantages to continue with our commendable earnings track record," he said at the company's annual general meeting (AGM) today.

Deleum is also on the lookout for technological companies to collaborate to foster technological innovation in its products and services while maintaining its competitive edge.

The company said the potential partnership and collaboration with technology partners dovetail with Deleum's aim to achieve transformative growth this year and in the future.

At the AGM today, Deleum appointed Tan Seri Shamsul Azhar Abbas as its new chairman, effective June 1, 2023.

Shamsul will succeed Datuk Izham Mahmud as he will remain on Deleum's board as a non-independent non-executive director.

Shamsul joined the board on June 9, 2022.

He has had an illustrious career in the O&G industry, having been in the industry for more than 40 years. He has also served on various boards of public-listed companies.

Deleum notched up revenue of RM698.0 million in the financial year ended December 31, 2022 (FY22), an increase of 25.0 per cent from the previous year, attributed to encouraging spending in the oil and gas sector.

Overall growth was delivered across three segments, power and machinery, oilfield services, and integrated corrosion solutions.

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