KUALA LUMPUR: Reservoir Link Energy Bhd's net profit surged 184.3 per cent year-on-year (YoY) to 1.22 million in its first quarter ended Sept 30, 2023 (Q1FY24) from RM428,000 in the same period last year on the back of higher revenue.
Revenue for the period increased 63.4 per cent to RM67.69 million versus RM41.43 million in Q1FY23.
This was mainly due to the improvement in revenue from both renewable energy segment and oil and gas segment by RM16.4 million and RM9.9 million respectively.
In a filing to Bursa Malaysia, the company said uncertainty in the energy market will continue which requires industry players to be agile in responding to the changing in the energy landscape and embrace innovation.
"The outlook for the oil and gas sector remains positive for upstream activities such as drilling rigs, well services activities and underwater services due to the repair and maintenance activities required to maintain the integrity of offshore facilities," it said.
The company's 51-per cent owned subsidiary Founder Group Ltd (FGL) is considering to list on the Nasdaq stock exchange.
This will represents strategic step for FGL to offer enhanced financial flexibility through a new fundraising platform to accelerate the expansion and growth trajectory of its solar renewable business.
By leveraging on the Nasdaq, FGL will also be able to improve its corporate image and visibility to penetrate into a wider market thereby broadening both the existing client and investor base.
Reservoir Link executive deputy chairman Thien Chiet Chai said in response to the ever-changing energy landscape, the company sees the importance in staying ahead through embracing innovative and sustainable solutions.
This culminated in its strategic approach to better diversify its business exploring various alternative energy sources as well as venturing into becoming an asset owner.