Group Remains Cautiously Optimistic on Growth Opportunities in Oil & Gas and HVAC
PROPEL GLOBAL BERHAD (Propel Global or the Group), a provider of oil and gas (O&G) services, today announced its financial results for the first quarter of fiscal year 2025 (Q1 FY2025). The Group recorded revenue of RM34.3 million for the quarter ended 30 September 2024, reflecting a 24.2% increase from RM27.6 million in the corresponding quarter of the previous year (Q1 FY2024).
The Group achieved revenue growth in Q1 FY2025, driven primarily by the Oil & Gas (“O&G”) segment, which contributed RM20.3 million. This performance was supported by ongoing Engineering, Procurement, Construction & Commissioning (“EPCC”) and Marine Heating, Ventilation, and Air-conditioning (“HVAC”) projects. While the segment’s profit before tax (“PBT”) moderated to RM1.4 million compared to RM5.0 million in Q1 FY2024, this was primarily due to a foreign exchange loss of RM1.1 million from the depreciation of the US Dollar and the absence of one-off gains recorded in the previous year, amounting to RM2.8 million.
The Technical Services (“TS”) segment achieved impressive revenue growth, reaching RM11.2 million, up from RM8.6 million in Q1 FY2024, reflecting progress on the construction of an electronics factory in Chuping, Perlis. Although the segment posted a marginal loss before tax (“LBT”) of RM0.2 million, this was mainly due to increased material and operational costs, which the Group is actively addressing to enhance margins moving forward.
The Information and Communications Technology (“ICT”) segment continued its steady performance, contributing RM2.8 million in revenue and RM0.6 million in PBT. This reflects the success of the Group’s diversification strategy and its ability to capitalise on growth opportunities in the digital technology sector.
For Q1 FY2025, the Group reported a LBT of RM4.0 million, compared to a PBT of RM0.9 million in Q1 FY2024. This was due to higher corporate administrative expenses, including professional charges and staff costs, along with a fair value loss of RM0.5 million on quoted shares and goodwill impairment losses of RM0.2 million. The absence of one-off gains recorded in the previous year further impacted the overall comparative performance.
Despite these challenges, the Group remains well-positioned for future growth, with total equity of RM102.5 million and cash and cash equivalents of RM19.8 million as of 30 September 2024. This robust position enables PGB to invest in strategic initiatives and confidently navigate market uncertainties while maintaining a focus on long term value creation for stakeholders.
Ms. Angeline Lee, Executive Director / Group Chief Executive Officer of Propel Global commented, “Our Q1 FY2025 results highlight the resilience of our business amidst external challenges. While foreign exchange losses and the absence of one-off gains impacted our profitability, our revenue growth reflects the strength of our core operations and ongoing diversification efforts.”
She added, “With our increased stake in Best Wide Engineering Sdn. Bhd. (“BWE”) to 90.0%, we are well-positioned to capitalise on opportunities in the oil and gas sector, particularly as Petronas continues its RM60 billion capital expenditure. Additionally, our focus on HVAC services aligns with Malaysia’s sustainability goals under the National Energy Transition Roadmap (NETR) and Budget 2025, positioning us to meet the rising demand for energy-efficient solutions.”
The Group remains optimistic about its growth prospects in fiscal year 2025 (“FY2025”). In the O&G segment, Petronas’ substantial investments, including RM10 billion in recently awarded contracts for Maintenance, Construction, and Modification (“MCM”) projects, provide a solid foundation for growth. The HVAC segment is set to benefit from Malaysia’s ambitious sustainability goals, with RM300 million allocated under Budget 2025 to support green initiatives and the potential introduction of a carbon tax in 2026 further encouraging businesses to adopt eco-friendly practices. PGB’s expertise in energy-efficient solutions positions the Group to capitalise on these trends.
While global economic uncertainties persist, driven by geopolitical tensions and potential supply chain disruptions following the recent US presidential election, Malaysia’s economy is expected to grow steadily, with GDP forecasted to rise by 4.5% to 5.5% in 2025. This positive outlook, supported by a historic RM421 billion in expenditure under Budget 2025, underscores the Group’s confidence in its ability to navigate challenges and deliver sustainable growth for its stakeholders.
ABOUT PROPEL GLOBAL BERHAD
Propel Global Berhad (Propel Global or the Group) is a provider of oil and gas (O&G) services, including the supply and provision of maintenance services for air-conditioning and ventilation systems, alongside specialised oilfield services such as pipe recovery, well intervention, diagnostic and sand management, and production enhancement. The Group also offers engineering and technical works for the O&G industry. In addition, Propel Global provides technical services for industrial, commercial, and residential construction and office maintenance, as well as ICT services, including trading in hardware, software, and spare parts. The Group also engages in investment holding activities.
Issued By: 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