|Group's two consecutive quarters of profitability to help uplift its PN17 status|
KUALA LUMPUR, Feb 22, 2023 - (ACN Newswire) - Propel Global Berhad, a provider of oil and gas (O&G) services as well as downstream specialty chemicals to the O&G industry, today announced that the Group recorded a 3.81% gain in revenue to RM24.5 million for the second quarter ended 31 December 2022 (2Q FY2023) compared with RM23.6 million for the corresponding quarter in 2Q FY2022 from continuing operations.
|Ms. Angeline Lee, Group Chief Executive Officer of Propel Global|
For the quarter under review, the Group registered RM2.59 million in profit before tax (PBT) compared with PBT of RM0.6 million from continuing operations. For the first-half period ended 31 December 2022 (1H FY2023), the Group registered 15.45% increase in revenue to RM42.6 million compared with RM36.9 million in 1H FY2022 while PBT increased to RM5.9 million compared with RM0.7 million.
On a segmental basis, the Group's O&G operations recorded a 35.29% increase in revenue to RM11.5 million in 2Q FY2023 compared with RM8.5 million in the corresponding quarter of the previous financial year while PBT increased to RM2.3 million from RM0.1 million. Under technical services, the Group registered 13.91% decrease in revenue to RM13.0 million from RM15.1 million while PBT for the quarter increased to RM2.8 million compared with RM0.7 million.
The increased sales for the O&G segment are mainly attributable to higher offtake of production chemicals and fulfilment of work orders for well services. The segment's increase in PBT is mainly due to higher margin contributed from radial cutting torch services. For the technical services segment, the lower revenue reported is mainly due to project completions of higher contract sum in preceding year corresponding quarter while PBT improved due to reversal of liquidated ascertained damages on a construction project of commercial buildings and margin contributed from access road construction project.
Ms. Angeline Lee, Group Chief Executive Officer of Propel Global said, "The latest quarter's financial performance is good news for the Group as this is the second quarter of profitability and enables us to exit PN17 status soon. The focus on our strategies seeking opportunities to achieve better financial performance has paid off. The Group will continue to implement initiatives that will enhance our financial performance further."
"The outlook for the O&G industry is expected to be stable supported by crude oil price's decent recovery as this directly benefits businesses involved in exploration with positive spillover effect for others involved in O&G services."
Propel Global Berhad: 0091 [BURSA: PGB], https://www.propelglobal.com.my/
Topic: Press release summary
Source: Propel Global Bhd
Sectors: Daily Finance, Daily News, Local Biz, Oil & Gas
From the Asia Corporate News Network
Copyright © 2023 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.