KUALA LUMPUR (Aug 21): Deleum Bhd (KL:DELEUM) reported an 130% increase in second-quarter net profit, driven by stellar performance of the power and machinery and oilfield integrated services segments, coupled with foreign exchange gains and a reversal of impairment on trade receivables.

Net profit for the quarter ended June 30, 2024 (2QFY2024) rose to RM22.4 million or 5.57 sen per share, from RM9.73 million or 2.42 sen per share a year earlier, according to the oil and gas services provider in an exchange filing on Wednesday.

This is the highest quarterly earnings Deleum has reported since its listing on the Main Market of Bursa Malaysia in 2007.

The group declared a first interim dividend of four sen, up from two sen a year earlier, payable on Sept 30.

Quarterly revenue climbed 20.1% to RM225.9 million from RM188.1 million.

For the first half ended June 30, 2024 (1HFY2024), Deleum’s net profit grew 67.7% to RM31.6 million from RM18.9 million for the previous corresponding period, while revenue increased 24.3% to RM387.3 million from RM311.5 million.

“Our strategic focus on growth and operational excellence is paying off,” said Deleum group chief executive officer Ramanrao Abdullah. “Our strategy includes prioritising quality mergers and acquisitions, investing in innovation and technology, and exploring collaborations aligned with our goals. With a strong order book and an improving industry outlook, we remain optimistic about achieving sustainable growth.”

Deleum shares rose four sen, or 3.3%, to RM1.25 at Wednesday’s market close, valuing the group at RM501.9 million. Year to date, the stock has risen 30.9%.