KUALA LUMPUR: Propel Global Berhad, a provider of oil and gas (O&G) services, today announced the financial achievements for the second quarter of fiscal year 2024 (Q2 FY2024). The Group has generated revenue of RM35.1 million, marking an impressive 43.3% improvement from RM24.5 million in the preceding year's corresponding quarter (Q2 FY2023), amidst evolving market dynamics.

The Group’s profit before tax (PBT) for Q2 FY2024 stood at RM0.9 million, compared to a PBT of RM2.6 million in Q2 FY2023. This quarter’s performance is indicative of the strategic realignments and operational streamlining currently underway within the Group. These initiatives, aimed at enhancing efficiency and agility across Propel Global’s diverse segments, are important steps in the Group’s ongoing efforts to adapt and thrive in the dynamic market landscape.

The O&G segment remains a pivotal part of Propel Global's diverse portfolio, achieving notable revenue growth to RM18.5 million in Q2 FY2024, up from RM11.5 million in Q2 FY2023. 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.

In tandem, the Technical Services (TS) segment saw the revenue rise to RM15.6 million in Q2 FY2024, compared to RM13.0 million in Q2 FY2023, demonstrating the segment's capacity to secure and deliver on key projects. The TS segment's contribution to the Group's profitability was RM0.2 million in PBT, reflecting the segment's ability to maintain a steady performance amidst the completion of certain projects. As the segment moves forward, it is poised to explore new opportunities and engage in strategic projects that align with Propel Global's broader growth objectives.

The quarter also marked a strategic milestone with the introduction of the ICT segment, infusing an additional RM1.0 million into the Group's revenue streams and showcasing a promising start with a PBT of RM0.5 million. This new venture signifies Propel Global's forward-thinking approach, tapping into the burgeoning potential of digital transformation within the energy sector.

On a quarter-over-quarter comparison, Propel Global demonstrated operational resilience and strategic effectiveness, with a notable improvement in PBT from RM0.864 million in the previous quarter (Q1 FY2024) to RM0.935 million in Q2 FY2024. This represents a commendable increase of 8.2%, underscoring the Group's ability to navigate market challenges and capitalise on strategic initiatives for sustained growth.

Angeline Lee, Executive Director / Group CEO of Propel Global remarked, “Our performance in Q2 FY2024 is a testament to Propel Global’s dynamic approach and unwavering commitment to growth, even in a complex market landscape. 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.”

She added, “With a clear focus on the future, Propel Global is well-prepared to seize the opportunities presented by the National Energy Transition Roadmap (“NETR”) and the New Industrial Master Plan 2030. Our diverse expertise across O&G, technical services, ICT, and construction positions us uniquely to innovate and contribute to Malaysia’s sustainable development aspirations. We’re excited about the possibilities ahead and remain committed to delivering exceptional value to our stakeholders.”

In alignment with the Group’s strategic vision, Propel Global is broadening the horizons across key segments including oil and gas, technical services, ICT, and construction, underpinned by the Group’s commitment to sustainable and innovative growth. With a focus on engineering excellence, digital transformation, and cleaner energy solutions, Propel Global is poised to navigate the evolving market dynamics and capitalise on emerging opportunities, ensuring our alignment with Malaysia's energy transition and sustainable development goals.