PETALING JAYA: Leading oil & gas (O&G) services provider Deleum Bhd will focus on growth in its top and bottom lines, spurred by the projected increase in global capital spending in the sector as a result of robust demand for fossil energy.
To fuel the group’s next phase of growth, Deleum intends to broaden its product and service offerings, as well as regional presence. It will continue to invest in processes and systems to integrate its services on a seamless and robust platform, increasing the group’s capacity to meet the needs of its clients.
Deleum group CEO Rao Abdullah said: “We value our core businesses and will continue working with our principals to strengthen our position in the industry. While we seek to grow our current business by expanding on market share through cross- and up- selling within our various segments, we need to set sights on our next growth impetuses in order to create sustainable earnings.”
He added that it is not only extending its product and service offerings but also expanding its geographic footprint, particularly in Indonesia and Thailand, as this will allow it to better support and increase its client base in the region as demand grows.
“We are committed to executing our strategic initiatives and effectively leveraging our competitive advantages in order to continue with our commendable earnings track record,” said Rao.
The group is on the lookout for technological companies with which to collaborate in order to foster technological innovation in its products and services while maintaining its competitive edge. The potential partnership and collaboration with technology partners dovetail Deleum’s aim to achieve transformative growth this year and in the future.
Deleum notched up revenue of RM698 million in financial year ended Dec 31, 2022 (FY22), an increase of 25% from the previous year, which was attributed to encouraging spending in the O&G sector. Overall growth was delivered across three segments – power and machinery, oilfield services and integrated corrosion solution.
The strong top-line results led to the group’s net profit increasing significantly to RM42.1 million in FY222, up 146.9% from RM17.1 million a year ago, making it the best-ever group net profit in the past seven years.
At the company’s AGM yesterday, Deleum appointed Tan Sri Shamsul Azhar Abbas as its chairman effective June 1 2023, succeeding Datuk Izham Mahmud, 82, who will continue to remain on Deleum’s board as non-independent non-executive director.
