Deleum Bhd has declared a first interim dividend of 3.5 sen per share despite a weaker first-half (1H26) performance, as profit attributable to shareholders fell 39.7% year-on-year to RM19.3 million while revenue declined 9.6% to RM376.4 million.
The oil and gas (O&G) services provider said the lower 1H26 earnings reflected weaker operating performance in its Power and Machinery (P&M) and Oilfield Integrated Services (OIS) segments, alongside a shift in sales mix towards lower-margin sales and impairment losses on trade receivables.
The decline was partly cushioned by a RM2 million net foreign exchange gain compared to a RM0.2 million loss a year earlier, as well as RM1.9 million in bad debt recoveries in the OIS segment.
For the second quarter ended June 30, 2026, revenue also fell 19.2% to RM191.5 million from RM236.9 million, while profit attributable to shareholders dropped to RM10.3 million from RM19.6 million.
Deleum attributed the weaker quarterly performance to lower contributions from both its P&M and OIS businesses, higher fair value losses on forward foreign exchange contracts and impairment on trade receivables, partially offset by a RM1.9 million foreign exchange gain.
Looking ahead, Deleum expects Malaysia’s upstream O&G activities to remain supported by continued efforts to sustain production and improve the reliability of existing fields, although operatorship transitions have caused temporary disruptions and delays.
The group expects resilient performance for the remainder of FY26 as activities progressively normalise and it continues converting its order book into revenue.
Deleum’s 3.5 sen first interim dividend, amounting to approximately RM14.05 million, will be paid on Sept 30, 2026.
