Units of Carimin Petroleum Bhd, Dayang Enterprise Holdings Bhd, Deleum Bhd, Petra Energy Bhd, and Sapura Energy Bhd had today been awarded contracts by Petronas Carigali Sdn Bhd to provide maintenance, construction and modification services at its offshore facilities in peninsular Malaysia, Sabah and Sarawak.
Petronas said the five companies will carry out engineering and maintenance services, which include topside major maintenance as well as facilities improvement projects for a five-year period from September 2017, with an option to extend an additional year.
MD only holds around 0.167% shares. So better look at the other substantial shareholders / owners that probably runs the business in the background. Non Exec Chairman Dato' Izham Mahmud has 37.36%, Datuk Vivekananthan has 31.13%. So, the MD's shares movement is negligible.
Deleum is one of the few O&G companies that stay profitable in the down cycle of O&G industry in past 4 years. It gives decent dividend consistently too. If you see its quarterly trend, Q1 is seasonally its weakest quarter, and earnings keeps improving when approaching year end. Thus, subsequent Qs should perform better than last Q1. MCM contract implementation kick-in from Q2 onwards, oil price is stabilising and may increase after Nov'18 if Iran sanction materialise, plus USD is strengthening. I think Deleum is attractive at current price level.
value 88 i agree with you view Q1 is seasonally its weakest quarter, and earnings keeps improving when approaching year end. But due to 2nd quarter fall under GE14, it already cause the 2nd quarter economy growth down to 5.2 %, mining sector contribute -2.2% (oil & gas & other mining). so to be caution on the coming quarter report. For me more optimistic of next year performance.As i can forsee goverment will speed up /increase the income from the 2 oil (Crude oil & palm oil) to reduce their deficit.
Deleum registered improved earnings YoY and QoQ in this quarter, even its Integrated Corrosion Solution segment recorded loss due to MCM contract start-up and mobilisation cost. In coming quarters, when the start-up cost is no longer needed and MCM contract implementation picks up pace, the ICS segment will back to profitability and Deleum's eanrings will go up to another higher level.
When the good quarterly report came out on 21st Aug, there are only 2 comments in i3 forum till now. This shows how unpopular Deleum is. But this is exactly the reason why it is so unknown and can stay undervalue. I believe when its earnings keep improving in coming quarters, attention will be attracted and Deleum will deserve its fair value then. I would just hold and wait.
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