KUALA LUMPUR: Propel Global Bhd registered a lower net profit of RM32,000 in the first quarter ended Sept 30, 2023 (1Q24) from RM3.05 million a year ago.
This was mainly attributed to lower revenue in the technical services segment with the completion of short-term projects in the preceding quarter.
The oil and gas (O&G) services provider's revenue, however, rose 52.2 per cent to RM27.63 million from RM18.15 million previously.
The company registered lower earnings per share of 0.01 sen compared to 0.50 sen in 1Q23, according to its filing to Bursa Malaysia today.
In the O&G segment, Propel recorded a revenue of RM19 million and a profit before tax of RM5 million in 1Q24, demonstrating a robust increase from RM9.9 million in revenue and RM2.5 million in profit before tax in the preceding year's corresponding quarter.
This 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 rechnical services segment recorded a revenue of RM8.6 million and a pre-tax loss of RM0.1 million.
This reflects the conclusion of several high-margin, short-term projects compared to the previous year.
The other segment reported a pre-tax loss of RM4.0 million in 1Q24, mainly due to corporate administrative expenses.
Propel Global executive director and group chief executive officer Angeline Lee said the company's 1Q24 results, while reflecting some market-induced challenges, also underscored its 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 and New Industrial Master Plan 2030, aligning our operations with sustainable development goals," she said in a separate statement.
Lee said Propel Global is keenly focused on leveraging opportunities from the National Energy Transition Roadmap and the New Industrial Master Plan 2030, aligning with the government's initiatives under the 12th Malaysia Plan.
She said these prospects, combined with the company's expertise in O&G and construction, position it strongly for future success.
"We remain committed to delivering innovative solutions and value to our stakeholders.
"In line with the company's strategic direction, Propel Global is expanding its capabilities in O&G and technical services segments, focusing on engineering, technical and technology services," she added.