PROPEL GLOBAL ACHIEVES RM27.6 MILLION IN REVENUE IN Q1 FY2024

Group continues to navigate through challenging market and focusing on sustainable practices

KUALA LUMPUR, 27 NOVEMBER 2023 – PROPEL GLOBAL BERHAD ("Propel Global" or the "Group”), a provider of oil and gas (“O&G”) services as well as downstream specialty chemicals to the O&G industry, today announced its financial performance for the first quarter of fiscal year 2024 (“Q1 FY2024”). Despite challenging market conditions, Propel Global reported a revenue of RM27.6 million in comparison to RM18.1 million in Q1 FY2023.

The Group recorded a lower profit before tax ("PBT") of RM0.9 million in Q1 FY2024, which was mainly attributed to lower revenue in the Technical Services (“TS”) Segment with the completion of short-term projects in the preceding quarter.

In the O&G Segment, Propel Global recorded a revenue of RM19.0 million and a PBT of RM5.0 million in Q1 FY2024, demonstrating a robust increase from RM9.9 million in revenue and RM2.5 million in PBT in the preceding year's corresponding quarter. This significant growth is mainly due to contributions from new services in engineering and technical works for the oil and gas industry, following the acquisition of a new subsidiary. The segment’s PBT improvement by RM2.5 million from the previous year is further bolstered by a one-off reversal of impairment loss on receivables and waiver of debts received of RM1.3 million and RM1.5 million respectively.

The TS Segment recorded a revenue of RM8.6 million and a slight loss before tax (“LBT”) of RM0.1 million. This reflects the conclusion of several high-margin, short-term projects compared to the previous year. The Other Segment reported a LBT of RM4.0 million in Q1 FY2024, mainly due to corporate administrative expenses.

 Ms. Angeline Lee, Executive Director / Group Chief Executive Officer of Propel Global said, “Our Q1 FY2024 results, while reflecting some market-induced challenges, also underscore our ability to adapt and strategically align with evolving business landscapes. The one-off expenses this quarter represent our commitment to our staff and the future of our company. We are actively pursuing opportunities under the National Energy Transition Roadmap and New Industrial Master Plan 2030, aligning our operations with sustainable development goals."

"Looking forward, Propel Global is keenly focused on leveraging opportunities from the National Energy Transition Roadmap and the New Industrial Master Plan 2030, aligning with the government's initiatives under the 12th Malaysia Plan. These prospects, combined with our expertise in O&G and construction, position us strongly for future success. We remain committed to delivering innovative solutions and value to our stakeholders."

In line with the Group’s strategic direction, Propel Global is expanding its capabilities in O&G and Technical Services Segments, focusing on engineering, technical and technology services.