Propel Global Closes FY2024 Strongly With 56.82% Growth in Revenue to RM176.0 Million

Group’s Growing Financials and Solid Balance Sheet Continues to Support Future Expansion Plans

KUALA LUMPUR, 29 AUGUST 2024 – PROPEL GLOBAL BERHAD ("Propel Global" or the "Group”), a provider of oil and gas (“O&G”) services, today announced its financial results for the fourth quarter of fiscal year 2024 (“Q4 FY2024”). For the full financial year ended 30 June 2024 (“FY2024”), PGB recorded a revenue of RM176.0 million, reflecting a substantial increase of 56.82% from RM112.3 million in FY2023.​

The revenue growth was primarily driven by the Technical Services (“TS”) segment supported by a key construction project in Chuping, Perlis together with several other construction projects. Furthermore, the Oil & Gas (“O&G”) segment also saw its revenue rise to RM81.5 million from RM49.7 million in FY2023, supported by the ongoing Engineering, Procurement, Construction & Commissioning (“EPCC”) and Marine Heating, Ventilation, and Air-conditioning (“HVAC”) projects.

Correspondingly, the gross profit improved from RM28.4 million in FY2023 to RM32.4 million in FY2024. However, the overall profitability was affected by higher administrative expenses such as professional charges and staff costs which includes share-based payment/share grant, and the incentive bonus payment for the retention of staff and to attract new talent. These increased expenses are significant in FY2024 while Propel Global is preparing for the next phase of growth in FY2025.

For the current quarter, the Group recorded a revenue of RM47.5 million, an increase from RM43.5 million in the corresponding quarter of the previous year (“Q4 FY2023”). Propel Global achieved a profit before tax ("PBT") of RM7.6 million for Q4 FY2024, a significant improvement of 139.57% from RM3.2 million in Q4 FY2023. This increase was mainly attributed to the reversal of impairment losses on receivables, demonstrating our strong capability in collection as well as strong revenue and PBT contribution by the TS segment.

In the O&G segment, revenue stood at RM13.9 million with a PBT of RM3.5 million, compared to RM16.2 million in revenue and RM2.3 million in PBT in Q4 FY2023. The reduction in revenue was primarily due to the absence of contributions from a disposed subsidiary. However, the segment's profitability improved, driven by the aforementioned reversal of impairment losses.

The TS segment reported revenue of RM31.5 million and a PBT of RM8.0 million, up from RM27.3 million in revenue and PBT jumped substantially from RM4.3 million in Q4 FY2023. The improved PBT was mainly contributed by a construction project of an electronics factory in Chuping, Perlis, as well as completion of several other construction projects in the current quarter.

The newly established Information and Communications Technology (“ICT”) segment contributed RM2.1 million in revenue and RM0.8 million in PBT, reflecting the Group's ongoing diversification efforts and strategic expansion into new markets.

Notably, the Group maintained a solid cash position, with cash and cash equivalents totaling RM18.5 million as of 30 June 2024. This strong financial footing continues to support Propel Global’s capacity to self-fund its upcoming projects, ensuring financial flexibility and readiness for future growth. Subsequently, with Propel Global’s strong financial stability, the Group is eager to participate in larger projects.

Ms. Angeline Lee, Executive Director / Group Chief Executive Officer of Propel Global commented, “Our FY2024 results underscore the resilience and adaptability of our business model. The improvement in our revenue and the stability in profitability, reflect our strategic focus and operational efficiency. As we move forward, we remain committed to leveraging our strengths and pursuing opportunities that will drive sustainable growth and enhance value for our stakeholders."

She added, “Our strong cash position not only enables us to meet our financial obligations with confidence but also positions us well to capitalise on emerging opportunities. We are dedicated to continuing our growth trajectory by executing our projects efficiently and exploring new ventures.”

Looking ahead, Propel Global is well-positioned to leverage its diversified portfolio and strong cash position to drive further growth. The Group anticipates continued opportunities in the O&G sector, supported by Petronas' substantial capital expenditure plans. In the construction sector, government-backed infrastructure projects are expected to sustain momentum, providing a robust pipeline of work. While mindful of potential market volatility and economic uncertainties, the Group remains committed to strategic investments and operational efficiency, aiming to enhance profitability and shareholder value in the coming year.