KUALA LUMPUR: Propel Global Bhd registered a net loss of RM4.52 million in the first quarter (Q1) ended Sept 30, 2024 from a net profit of RM32,000 a year ago due to higher corporate administrative expenses.
However, the company recorded RM34.3 million revenue for the quarter, up 24.2 per cent from RM27.6 million in the corresponding quarter of the previous year.
The company achieved revenue growth in Q1 2024, driven primarily by the oil and gas (O&G) segment, which contributed RM20.3 million.
Group chief executive officer and executive director Angeline Lee said while foreign exchange losses and the absence of one-off gains impacted the company's profitability, its revenue growth reflects the strength of the company's core operations and ongoing diversification efforts.
"With our increased stake in Best Wide Engineering Sdn Bhd (BWE) to 90.0 per cent, 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," said Lee.
Propel Global remains optimistic about its growth prospects in fiscal year 2025 (FY25).
In the oil and gas statement segment, Propel Global said Petronas' substantial investments, including RM10 billion in recently awarded contracts for maintenance, construction, and modification (MCM) projects, provide a solid foundation for growth.
The heating, ventilation and air conditioning segment is set to benefit from Malaysia's ambitious sustainability goals.
This will be fuelled by the RM300 million allocated under Budget 2025 to support green initiatives potential introduction of a carbon tax in 2026 further encouraging businesses to adopt eco-friendly practices.