KUALA LUMPUR: Deleum Bhd's net profit for the third quarter ended Sept 30, 2024 (3Q 2024), more than doubled to RM25.07 million from RM12.2 million in the previous corresponding quarter.

In a Bursa Malaysia filing today, Deleum attributed the net profit increase to an improved profit margin for the power and machinery (P&M) segment and the continued positive momentum of the oilfield integrated services (OIS) segment.

The oil and gas services provider said 3Q revenue rose to RM269.22 million compared to RM241.82 million previously, driven by a 74.3 per cent surge in OIS revenue to RM50.4 million, while P&M revenue sustained at RM218.7 million, 2.8 per cent higher year-on-year.

For the nine months ended Sept 30, 2024 (9M 2024), the group's net profit jumped 82.5 per cent to RM56.69 million from RM31.07 million in the same period last year.

Revenue grew by 18.7 per cent to RM656.54 million compared to RM553.34 million in 9M 2023.

Deleum noted that the increase in its P&M segment was largely due to higher sales in turbine parts and repairs, control and safety valves and flow regulator services, as well as retrofit projects.

"The segment maintained strong momentum throughout 9M 2024, with revenue climbing to RM524.8 million and profit before tax (PBT) rising to RM97.3 million, as compared to RM465.7 million and RM64.9 million, respectively, in the previous year," it said.

Deleum said its OIS segment delivered a strong performance in 3Q 2024, with revenue increasing by 74.3 per cent, supported by higher business activities in slickline services in East Malaysia, asset integrated solution services, speciality chemicals and well stimulation services, solid control services, as well as maintenance, construction, and modification projects. 

Meanwhile, on prospects, group chief executive officer Rao Abdullah said the group continues to see its financial performance driven by growth across both segments, especially in the OIS.

He said the company is excited about the two new OIS segment contract wins, which are projected to propel the group to new heights.

"While we have seen progressive growth in the earlier quarters, we anticipate a weaker fourth quarter. However, we expect to finish the year strong.

"With our focus on broadening our product lines and establishing a strong regional presence in the industry, we continue to explore opportunities across our segments. Our goal is to deliver enhanced shareholders' returns," he added.