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DELEUM BERHAD
Management Discussion and Analysis
Following the success of the development
and commercialisation of SolidClenz,
the Group continued to leverage on the
in-house expertise to further develop new
solutions by introducing an online
cleaning product namely Antifoulant GP/
HX, whereby cleaning can be carried out
without plant shutdown; and another
solution, namely Del-Clean to dissolve
and disperse inorganic scale along with
organic deposits. Given the successful
commercialisation of the newly developed
well performance enhancement products
and solutions, the Group saw an increase
in contribution to the Group’s earnings
and envisages potential growth in this
specialty chemicals business.
A new research and development facility
was set up in Petaling Jaya during the
year to further support the Chemical
Services unit’s research and development
Varnish Skimming of Stator
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effort in developing an integrated suite of
chemical solutions to meet the market
demands in addressing production and
flow assurance issues.
Maintenance, Repair and Overhaul (MRO)
The MRO segment oversees the servicing,
repair and maintenance of motors,
generators, transformers, pumps, valves
and pipework; integrated corrosion and
inspection services; and structural repair
for the oil and gas as well as general
industries.
On 5 October 2012, the Group via its
wholly-owned subsidiary Deleum Services
Sdn. Bhd. (Deleum Services), completed
the acquisition of 60% equity interest in
Northern Primera Sdn. Bhd., now known
as Deleum Primera Sdn. Bhd. (Deleum
Primera). The acquisition offers synergistic
benefits to the Group in particular to the
MRO segment as it has similar target
customers. Furthermore, it will expand
the MRO segment’s scope of services from
servicing and maintenance of rotating
equipment to other maintenance and
repair services supply chain such as
painting and blasting as well as corrosion
prevention whilst providing another
revenue stream. Additionally, Deleum
Primera is the sole distributor of Sponge-
Jet technology in Malaysia and Indonesia,
thus providing a gateway for the Group to
venture into the Indonesian market, in line
with the Group’s regional expansion plans.
Sponge-Jet abrasive blasting method is
more environmental-friendly as it
suppresses fugitive emissions and is a
recyclable technology. This technology
has already been recognised and accepted
by PETRONAS, SIRIM, Department of
Occupational Safety and Health (DOSH)
and saw good acceptance for surface
preparation services in the oil and gas
industry.
The MRO segment’s revenue contribution
during the year increased by 29.4% from
RM13.0 million to RM16.8 million, mainly
due to inclusion of RM5.1 million in
revenue from Deleum Primera, a new
subsidiary which was acquired during
the year. However, Deleum Rotary
Services Sdn. Bhd.’s revenue contribution
declined by RM0.9 million due to lower
business activities.