KUALA LUMPUR (Nov 21): Deleum Bhd’s net profit for the third quarter ended Sept 30, 2019 jumped 44% to RM13.11 million from RM9.12 million a year ago, on higher revenue in the power and machinery, and integrated corrosion solution segments, despite lower operating results from the oilfield service segment.

In addition, the higher share of results from an associate company coupled with a lower net loss recorded on the foreign exchange on ringgit against US dollar also helped to boost the group’s earnings, Deleum said in a filing with the stock exchange.

Quarterly revenue jumped 69% to RM296.51 million from RM175.44 million a year ago.

For the cumulative nine-month period, the group’s net profit climbed 25% to RM24.58 million from RM19.69 million in the previous corresponding period. Revenue for the period rose 50% to RM636.17 million from RM423.24 million.

For the remainder of the current year, Deleum said it remains cautious on its financial outlook.

It expects its power and machinery segment to remain as the largest contributor to the profitability of the group following the strong financial performance this quarter.

On integrated corrosion solution segment, the group said it will continue with its initiatives and measures to maintain its financial performance for the remainder of the financial year.

As for the oilfield services segment — which  has been impacted adversely by the mobilisation cost of its newly secured slickline contracts awarded at the end of the previous financial year — Deleum said the focus is on fulfilling all of its contractual requirements and working on improvement of margin by practising stringent cost management.

Deleum’s share price rose one sen or 0.95% to close at RM1.06, for a market capitalisation of RM425.65 million.