T7 Global Bhd said TSeven Shirley will be installed and operated at the Nong Yao field in Thailand water in 2024. (Photo by T7 Global)

KUALA LUMPUR (Feb 26): Energy services firm T7 Global Bhd said on Monday its net profit rose 26% to record high in the fourth quarter from a year earlier as revenue rose faster than operating expenses.

Net profit for the three months ended Dec 31, 2023 was RM14.38 million compared with RM11.42 million over the same period a year earlier, T7 Global said in an exchange filing. Revenue surged nearly 50% year-on-year to RM250.75 million from RM167.73 million.

“The outlook for the upstream oil and gas sector remains positive" amid high oil and gas prices, increased capital spending and the reopening of China’s borders, despite concerns on the world economy and potential for a global recession, T7 said.

Shares of T7 extended morning gain and climbed as much as 6% to 53 sen, its highest since March 2019, following the results. The stock was trading at 52 sen at 4.25pm after more than 7.2 million shares changed hands.

T7 Global chief executive officer Tan Kay Zhuin said the group will continue to expand its energy asset portfolio due to the growing regional demand for the applications of mobile offshore production units (Mopu) and hydraulic workover units.

“We successfully delivered TSeven Elise Mopu [at the Bayan field] which started operations in July 2023,” Tan said in a separate statement. “This contract will provide us with consistent income for the next 10 years.”

In addition, TSeven Shirley will be installed and operated at the Nong Yao field in Thailand water in 2024, the company said, noting that the Mopu is expected to generate recurring income over the next five years, he said.

Beyond its energy division, the group expects the aerospace industry to remain “challenging for the next few years” though it has managed to secure new international clients, which could bring recurring revenue to its metal surface treatment facility.

"For our T7 AeroTech's metal surface treatment facility, we have observed increased activities in the global aircraft production rates. We are well-positioned in the aerospace supply chain to capitalise on this industry," said Tan.

Meanwhile, for its construction division, the company said it would focus on delivering the baggage handling system asset replacement programme at the Kuala Lumpur International Airport secured in December 2022.

For the full year in FY2023, T7 Global’s net profit increased by 62.6% to RM33.08 million from RM20.35 million in FY2022, while its revenue rose by 61.5% to RM586.18 million from RM362.97 million. It is by far the best financial year the group recorded.

T7 Global did not recommend any dividend for the financial year.