Deleum ... May11

Oil and gas services provider Deleum Bhd is ramping up to grow its business.

It is currently tendering for around RM200 million worth of jobs encompassing the inventory business, and the services and equipment side. The tenders run from now until the middle of next year (2012).

Currently, Deleum has a number of projects under its belt with a collective contract value of RM1 billion that span until 2016.

For 1QFY11 ended March 31, Deleum saw its net profit up by 21.4% year-on-year to RM5.7 million from RM4.7 million. Revenue for the period rose to RM128.4 million from RM78 million.

The current crop of contracts for Deleum is based locally and the company would continue to focus on home shores and are looking at possibly branching into Indonesia and Brunei.

Among Deleum’s future strategies include merger and acquisition (M&A) activities.

Deleum’s last acquisition was Rotary Technical Services Sdn Bhd in July 2010 or RM8.7 million. Rotary provides servicing, repair, modification and upgrading of machinery and equipment.

As at end-March, Deleum’s cash and bank balances stood at RM8.3 million, with collective borrowings at RM19.7 million.

Currently we are budgeting capital expenditure for the year to be around RM20 million.