Propel Global Bhd recorded a lower profit before tax (PBT) of RM900,000 in for the first quarter of fiscal year 2024 (Q1 FY2024), which was mainly attributed to lower revenue in Technical Services (TS) segment with the completion of short-term projects in the preceding quarter.
The oil & gas services provider and downstream specialty chemicals to the O&G industry said in a statement today (Nov 27) that despite challenging market conditions, it reported a revenue of RM27.6 million in comparison to RM18.1 million in Q1 FY2023.
In the O&G Segment, the group recorded a revenue of RM19 million and a PBT of RM5 million in Q1 FY2024, demonstrating a robust increase from RM9.9 million in revenue and RM2.5 million in PBT in the previous year.
“This significant growth is mainly due to contributions from new services in engineering and technical works for the oil and gas industry, following the acquisition of a new subsidiary.
“The segment’s PBT improvement by RM2.5 million from the previous year is further bolstered by a one-off reversal of impairment loss on receivables and waiver of debts received of RM1.3 million and RM1.5 million respectively.
Meanwhile, the TS segment recorded a revenue of RM8.6 million and a slight loss before tax (LBT) of RM100,000, reflecting the conclusion of several high-margin, short-term projects compared to the previous year.
The other Segment reported a LBT of RM4 million in Q1 FY2024, mainly due to corporate administrative expenses.
Its executive director and group chief executive officer Angelina Lee said its Q1 FY2024 results, while reflecting some market-induced
challenges, also underscore our ability to adapt and strategically align with evolving business landscapes.
“The one-off expenses this quarter represent our commitment to our staff and the future of our company. We are actively pursuing opportunities under the National Energy Transition Roadmap (NETR) and New Industrial Master Plan 2030 (NIMP 2030), aligning our operations with sustainable development goals.
“Looking forward, we are focused in leveraging opportunities from NETR and NIMP 2030, aligning with the government’s initiatives under the 12th Malaysia Plan.
“These prospects, combined with our expertise in O&G and construction, position us strongly for future success. We remain committed to delivering innovative solutions and value to our stakeholders,” she added.
In line with the group’s strategic direction, Propel Global is expanding its capabilities in O&G and Technical Services Segments, focusing on engineering, technical and technology services.
