Nan Yusri says oil and gas industry is going through a tough period as oil prices are expected to stay depressed.
PETALING JAYA: Deleum Bhd
, a provider of specialised products and services to the oil and gas industry, posted a 34.2% fall in fourth-quarter net profit to RM11.03ml from RM16.79mil a year earlier.
Revenue fell 1.4% to RM202.82mil from RM205.79mil. Earnings per share were 2.76 sen compared with 4.2 sen.
The company has proposed a second interim dividend of five sen a share, payable on March 26.
In the FY ended Dec 31, 2015, it reported a pre-tax profit of RM71.2mil, down 22.7%. Its earnings fell 23.4% to RM45.41mil from RM59.32mil a year ago. Revenue was lower at RM649.40mil from RM657.27mil.
Deleum is riding on increased demand for its oilfield services, but group managing director Nan Yusri Nan Rahimy warned that the industry was going through a tough period as oil prices are expected to stay depressed.
Petroliam Nasional Bhd had recently announced it would defer capital expenditure and reduce operational expenditure, which industry players said would affect the level of the oil and gas activities in the country.
“There will be a downward pressure on margins and activity levels,” Nan Yusri said in a statement yesterday.
Despite the challenges posed by lower global oil prices and capital expenditure deferments by Petronas, Nan Yusri said existing production activities were expected to continue.
“The continuance of such activities will ensure the ongoing need for products and services for operations and maintenance. Deleum, with our diversified portfolio of products and services, is in a good position to meet those requirements,’’ he said.
PETALING JAYA: Deleum Bhd, a provider of specialised products and services to the oil and gas industry, posted a 34.2% fall in fourth-quarter net profit to RM11.03ml from RM16.79mil a year earlier.
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