KUALA LUMPUR: Propel Global Bhd, an oil and gas (O&G) service provider, reported a net loss of RM2.8 million for the third quarter of the fiscal year 2024 (Q3FY24), compared to a net loss of RM0.9 million in the same period the previous year.
The company attributed the wider loss to higher corporate administrative expenses, including professional fees and staff costs.
"The expenses in Q3FY24 included the charge for the share-based payment/share grant, and the incentive bonus payment.
"These expenses are essential for retaining and investing in human capital as the group is mostly service-driven, hence, people are the key assets," it added.
However, the company recorded higher revenue of RM65.8 million for the period, up from RM24.7 million a year earlier.
The increase in revenue for Q3FY24 was primarily driven by engineering, 9rocurement, construction and commissioning (EPCC) projects and marine heating, ventilation and air-conditioning (HVAC) projects.
"In the O&G segment, revenue reached RM30.1 million and profit before tax stood at RM3.3 million, reflecting an increase from RM12.1 million and RM2.7 million respectively in the third quarter financial year 2023 (3QFY23)," it said.
Propel Global said it maintained a cash position with cash and cash equivalents totalling RM20.3 million at the end of the nine months ended March 31, 2024.
Propel Global executive director and group chief executive officer Angeline Lee said the results reflect the company's commitment to strategic growth and adaptability in a dynamic market environment.
"The significant increase in revenue and our healthy cash flow position demonstrate our ability to capitalise on new opportunities and execute our projects effectively.
"As a new management team, we are focused on leveraging our strengths and pursuing sustainable growth initiatives to enhance value for our stakeholders," she said.
Lee noted that its cash position allows the company to promptly meet its financial obligations, capitalise on opportunities, and invest in personnel and technologies.
Propel Global will concentrate on completing current projects while continually bidding for new ones to ensure sustained growth in the future.