The Group achieved revenue growth in Q1 FY2025, driven primarily by the Oil & Gas (“O&G”) segment, which contributed RM20.3 million. This performance was supported by ongoing Engineering, Procurement, Construction & Commissioning (“EPCC”) and Marine Heating, Ventilation, and Air-conditioning (“HVAC”) projects. While the segment’s profit before tax (“PBT”) moderated to RM1.4 million compared to RM5.0 million in Q1 FY2024, this was primarily due to a foreign exchange loss of RM1.1 million from the depreciation of the US Dollar and the absence of one-off gains recorded in the previous year, amounting to RM2.8 million.

The Technical Services (“TS”) segment achieved impressive revenue growth, reaching RM11.2 million, up from RM8.6 million in Q1 FY2024, reflecting progress on the construction of an electronics factory in Chuping, Perlis. Although the segment posted a marginal loss before tax (“LBT”) of RM0.2 million, this was mainly due to increased material and operational costs, which the Group is actively addressing to enhance margins moving forward.

The Information and Communications Technology (“ICT”) segment continued its steady performance, contributing RM2.8 million in revenue and RM0.6 million in PBT. This reflects the success of the Group’s diversification strategy and its ability to capitalise on growth opportunities in the digital technology sector.

For Q1 FY2025, the Group reported a LBT of RM4.0 million, compared to a PBT of RM0.9 million in Q1 FY2024. This was due to higher corporate administrative expenses, including professional charges and staff costs, along with a fair value loss of RM0.5 million on quoted shares and goodwill impairment losses of RM0.2 million. The absence of one-off gains recorded in the previous year further impacted the overall comparative performance.

Despite these challenges, the Group remains well-positioned for future growth, with total equity of RM102.5 million and cash and cash equivalents of RM19.8 million as of 30 September 2024. This robust position enables PGB to invest in strategic initiatives and confidently navigate market uncertainties while maintaining a focus on long term value creation for stakeholders.

Ms. Angeline Lee, Executive Director / Group Chief Executive Officer of Propel Global commented, “Our Q1 FY2025 results highlight the resilience of our business amidst external challenges. While foreign exchange losses and the absence of one-off gains impacted our profitability, our revenue growth reflects the strength of our core operations and ongoing diversification efforts.”

She added, “With our increased stake in Best Wide Engineering Sdn. Bhd. (“BWE”) to 90.0%, 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.”

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