Propel Global Berhad anticipated to advance should its listing status be dropped from the Practise Note 17 (PN17) category this year, according to Angeline Lee, group chief executive officer of the company.
Propel, a provider of downstream specialty chemicals and oil and gas (O&G) services to the sector, was listed in the PN17 category of financially troubled companies more than a year ago.
Lee said the company reassures shareholders and other stakeholders that management is working towards uplifting the group's PN17 status.
"The positive financial performance to date is expected to be further supported by stable crude oil price and demand benefitting businesses like ours that are involved in the O&G services. It is foreseeable that the group will move to the next level once the PN17 status is uplifted," she said in a statement.
Propel reported a 12.3 per cent year-over-year (y-o-y) increase in revenue to RM24.7 million for its third quarter ended March 31, 2023, following the expansion of its range of services,
It reported a y-o-y improvement in its net profit for the quarter, moving from a net loss of RM6.86 million in the same period last year to a profit of RM831,000 this time around.
Despite an increase in pre-tax profit for the O&G and technical services segments compared to the third quarter of the 2022 year, the company's profitability was negatively impacted by higher corporate administrative costs, and pre-tax profit for the same quarter fell by 28.1 per cent to RM 900,000.
"The group has once again reported another quarter of profitability as we continue to focus on strengthening our financial performance by leveraging on our expertise and strengths. This is the third quarter in a row that the group has recorded positive financial performance since its listing with the two main business segments of O&G and technical services contributing positively," Lee said.