KUALA LUMPUR: Propel Global Bhd, an oil and gas (O&G) services provider, saw its net profit slipped 70.7 per cent to RM676 million for the second quarter (2Q) ended Dec 31, 2023, down from RM2.3 million in the previous year.
Its revenue, however, increased significantly by 43.3 per cent, rising from RM24.5 million to RM35.1 million.
Propel Global emphasised the significance of its O&G segment within its portfolio, noting substantial revenue growth to RM18.5 million in Q2 from RM11.5 million previously.
"This revenue increase reflects the segment's robust performance and the successful introduction of new services, particularly in engineering and technical works, which have been well-received in the market.
"The O&G sector continues to adapt to market dynamics, with the segment's profit before tax standing at RM1.6 million, indicative of the ongoing efforts to optimise service offerings and operational efficiencies," it added.
The technical services (TS) segment witnessed an increase in revenue to RM15.6 million in 2QFY24 from RM13.0 million in 2QFY23, showcasing its capability to secure and execute key projects.
Propel Global said the TS segment contributed RM0.2 million to its pre-tax profit, indicating its ability to maintain consistent performance despite the conclusion of specific projects.
Propel Global executive director and group chief executive officer Angeline Lee said the performance reflects the company's dynamic strategy and steadfast dedication to growth amid a challenging market environment.
"The introduction of new services and the launch of our ICT segment are pivotal in our journey towards leading the digital transformation in the energy sector.
"With a clear focus on the future, Propel Global is well-prepared to seize the opportunities presented by the National Energy Transition Roadmap and the New Industrial Master Plan 2030," she added.
Propel Global is expanding its presence across vital sectors such as oil and gas, technical services, ICT, and construction.