Deleum to achieve growth via partnerships, technology and improved efficiency

KUALA LUMPUR: Leading oil and gas (O&G) services provider Deleum Bhd is striving to achieve sustainable growth through strategic collaborations, technological innovations and operational excellence.

In a filing with Bursa Malaysia, group chief executive officer Rao Abdullah said Deleum is implementing several initiatives to drive revenue growth including seeking prospective mergers and acquisitions (M&A) internationally and potential domestic collaborations with major oil and gas services companies.

"Through strategic partnerships, infusion of technology, growth via M&A and organically, we are positioning Deleum for long-term success.

"Our growth strategies are meticulously planned, to surpass prior earnings,” he said in a statement after its annual general meeting today.

Earlier this year, Deleum solidified its commitment to strengthening technological capabilities and sustainability in the oilfield services segment via separate agreements with LatConnect 60 Ltd and Paradigm Technology Services B.V.

The group has also proposed acquiring a 7.7 per cent minority equity stake in LatConnect 60 in two stages for AU$1.53 million.

Furthermore, it is conducting due diligence to potentially acquire a 70 per cent stake in PT OSA Industries Indonesia, valued at US$7 million.

The move aims to enhance and solidify its power and machinery segment regionally.

The group has also committed to prioritise operational efficiency improvements, involving internal advancements.

Deleum is upgrading its enterprise resource system to ensure efficient business operations and enhanced process management.

For financial year 2023 (FY2023), the group posted a net profit of RM45.7 million, up 8.6 per cent from RM42.1 million a year earlier, while revenue increased 13.5 per cent to RM792.0 million from RM698.0 million previously.

As at March 31, 2024, the total order book across all segments amounted to RM594.7 million, with a significant portion attributed to the power and machinery and oilfield services segments.

With work expected to be delivered within the next 24 months, the group foresees a turnaround in its oilfield services segment in FY2024, leading to improved earnings for the year. - Bernama

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