KUALA LUMPUR, MALAYSIA / ACCESS Newswire / February 27, 2025 / PROPEL GLOBAL BERHAD ("Propel Global" or the "Group"), a provider of oil and gas ("O&G") services, today announced its financial results for the second quarter of fiscal year 2025 ("Q2 FY2025"). For the quarter ended 31 December 2024, the Group recorded revenue of RM28.3 million, compared to RM35.1 million in the corresponding quarter of the previous year ("Q2 FY2024").
The Group's performance for the quarter reflects sector-specific challenges and timing factors in revenue recognition, particularly the completion of major construction projects in the Technical Services ("TS") segment. However, growth in the O&G segment, driven by Engineering, Procurement, Construction & Commissioning ("EPCC") and Marine Heating, Ventilation, and Air-conditioning ("HVAC") projects, continued to provide strong support.
The O&G segment remained the primary revenue driver, recording RM21.4 million in Q2 FY2025, a 15.58% increase from RM18.5 million in Q2 FY2024. This growth was largely attributed to the continued execution of EPCC and HVAC projects. Profit before tax ("PBT") for the segment rose to RM3.4 million, up from RM1.6 million in the previous corresponding quarter, reflecting improved project execution and operational efficiencies.
The TS segment recorded revenue of RM2.9 million, significantly lower than RM15.6 million in Q2 FY2024, mainly due to the completion of major construction projects. The segment posted a loss before tax ("LBT") of RM3.1 million, primarily impacted by a provision of RM1.7 million in Liquidated Ascertained Damages ("LAD") from a construction project.
The Information and Communications Technology ("ICT") segment continued its expansion, contributing RM4.1 million in revenue and RM2.7 million in PBT, compared to RM1.0 million in revenue and RM0.5 million in PBT in Q2 FY2024, when the segment was still in its early stages. The strong growth in the ICT segment demonstrates the Group's successful diversification efforts and increasing demand for digital solutions.
The Other segment, which includes corporate expenses and investment holdings, recorded an LBT of RM4.5 million, compared to RM1.3 million in Q2 FY2024. The absence of a one-off RM4.2 million gain from the disposal of a subsidiary in the previous corresponding quarter was a contributing factor to the higher losses.
For the quarter, the Group posted an LBT of RM1.5 million, compared to a PBT of RM0.9 million in Q2 FY2024. The decline was primarily due to lower revenue in the TS segment, coupled with one-off costs related to LAD provisions. Despite this, Propel Global maintains a solid financial position, with total equity standing at RM99.9 million as of 31 December 2024.
Ms. Angeline Lee, Executive Director / Group Chief Executive Officer of Propel Global
Ms. Angeline Lee, Executive Director / Group Chief Executive Officer of Propel Global commented, "Our Q2 FY2025 results reflect the transitional phase as we pivot towards long-term growth. While the impact of completed construction projects has affected our Technical Services segment, the consistent contributions from our Oil & Gas business underscore our resilience. Our strategic expansion in this sector, including our increased 90% stake in Best Wide Engineering Sdn. Bhd. ("BWE"), is set to bolster our engineering and technical service capabilities."
She added, "Looking ahead, we are well-positioned to benefit from Petronas' RM60 billion capital expenditure programs, including RM10 billion in newly awarded Maintenance, Construction, and Modification ("MCM") contracts. At the same time, our growing focus on HVAC services aligns with Malaysia's sustainability agenda under Budget 2025 and the National Energy Transition Roadmap ("NETR")."
The Group remains focused on navigating industry challenges while seizing strategic opportunities. In the O&G segment, PGB expects continued growth, backed by Petronas' infrastructure expansion and the increasing demand for well intervention, production enhancement, and oilfield services.
ABOUT PROPEL GLOBAL BERHAD
Propel Global Berhad ("Propel Global" or the "Group") is a provider of oil and gas (O&G), pipe recovery, and well intervention services. The Group's building technical services business provides design, engineering, construction, project management and maintenance & management of commercial and industrial buildings and facilities on a single-source platform to a wide range of industrial clients. Propel Global has mid-to-long-term plans to venture into sustainable development and digital technology as part of the Group's transition to a zero-carbon business focus that includes renewable energy and electrification.
Swan Consultancy Sdn. Bhd. on behalf of Propel Global Berhad
For more information, please contact:
Jazzmin Wan
Email: j.wan@swanconsultancy.biz
Xinyi Ching
Email: x.ching@swanconsultancy.biz
SOURCE: Propel Global Berhad
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