Propel Global Berhad Archives

Propel Global Posts 2Q Revenue of RM24.5 Million

Group’s two consecutive quarters of profitability to help uplift its PN17 status

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/

Propel Global to Acquire 51% Stake in O&G Engineering Firm for RM7.82 Million

Propel Global Berhad (Bursa: MAIN, PGB, 0091), provider of oil and gas supporting services such as well services , engineering, procurement, construction and commissioning (EPCC) services, maintenance of heating, ventilation and air-conditioning (HVAC) systems as well as downstream specialty chemicals to the oil and gas (O&G) industry, today announced that the Company has entered into a conditional share sale agreement to buy a 51% stake in Best Wide Engineering (M) Sdn. Bhd. (BWE) for RM7.82 million.

BWE provides engineering and technical works for the O&G industry through engineering, procurement, construction and commissioning (EPCC) of new plants and plant modification works; design and supply of skidded process systems and engineered equipment for onshore plants and offshore platforms and; project management and engineering consultancy services. Its shareholders and directors are Azizi bin Alias (Azizi) with 45.8% equity interest, Jasniazrin Shah Bin Mohd Hata (Jasniazrin) with 44.2% equity interest and Tan Siew Lee (Siew Lee) with 10.0% equity interest.

Propel Global is acquiring the 51% stake from Azizi, who is selling his entire equity interest, and Siew Lee, who is selling 5.2% of his holdings. As part of the share sale agreement, Propel Global has also entered into a put and call option agreement with Jasniazrin and Siew Lee that requires the Company to purchase up to 49.0% of the remaining equity interest in BWE from them and, Jasniazrin and Siew Lee will grant Propel Global the right during the call option period that requires them to sell up to 34.0% equity interest in BWE to the Company.

BWE, which has 15 ongoing contracts with total unbilled contract value of RM21.8 million expected to be realised over the next three years, is guaranteeing a profit of RM2.4 million and RM2.6 million in profit after tax (PAT) for the financial year ended 30 November (FYE) 2022 and FYE 2023 respectively. BWE reported revenue of RM18.6 million and PAT of RM178,000 for FYE2019; RM19.0 million revenue and RM395,000 PAT for FYE2020 and; RM38.5 million revenue and RM2.3 million PAT for FYE2021. Currently, BWE has a tender book of RM41.3 million.

Ms. Angeline Lee, Group Chief Executive Officer of Propel Global said, “The acquisition is in line with the Group’s strategy to grow the O&G business through expanding our offerings and enhancing market presence as an O&G engineering services provider. BWE’s expertise and experience in EPCC works complements the Group’s existing O&G business.”

“We believe that combining the core competencies of BWE with the Group would enable the latter to bundle a wider range of service offerings to its customers and provide it with a competitive edge over competitors. The Group will also be able to tap into BWE’s existing customer base for cross-marketing opportunities and additional revenue stream.”

Propel Global Berhad: 0091 [BURSA: PGB], https://www.propelglobal.com.my/

Propel Global Berhad Confident of Expansion Plans on New Structure and Fresh Cash Injection

The Group actively seeking opportunities to grow O&G and building technical services businesses

Propel Global Berhad is confident that the new corporate structure as well as the cash reserve resulting from a regularisation plan that will see it take over the listing status of Daya Materials Berhad on 28 April 2022 will support expansion plans for both the oil and gas (O&G) and building technical services businesses that the Group is acquiring from Daya Materials.

The Group will trade under the stock name PGB and stock code 0091 from 28 April 2022 on the Main Market of Bursa Securities Malaysia Berhad. The listing of Propel Global follows the approval by shareholders at an extraordinary general meeting (EGM) on 21 January 2022 of a regularisation plan for Daya Materials that had been proposed on 31 December 2020.

Ms. Angeline Lee, Group Chief Executive Officer of Propel Global said, “We would like to thank stakeholders for keeping the faith with us on the corporate exercises that will conclude with the listing of Propel Global. We have seen the private placement representing 41% of our outstanding shares fully taken up by prominent investors and industry veterans. As a result of the funding from the private placement, Propel Global has a healthy cash balance and minimal debt as the gearing ratio has been reduced to 0.6 times.”

“The Group is actively exploring opportunities in the O&G industry especially in Sabah and Sarawak. High crude oil prices will encourage more investments into the industry, especially from oil majors. The country’s borders reopening will spur business activities and therefore demand for oil and gas.”

According to the US Energy Information Administration’s recent Short-Term Energy Outlook, international crude oil benchmark Brent is expected to trade at an average US$108 a barrel in the second quarter of this year and US$102 a barrel on average in the second half of 2022.

“We will continue to concentrate on expanding our existing well intervention and pipe recovery business by training our field engineers to deliver a wider range of downhole well technology solutions for our clients. Over the mid-term, we are looking to venture into the wireline business as this will make us more competitive in the plug and abandonment as well as the decommissioning programmes for both downstream and upstream facilities.”

“We also see more opportunities opening up for the building technical services business as foreign multinational companies (MNCs) investing in Malaysia set up their plants and facilities. We intend to leverage on the synergy from our construction and project management technical services as well as heating, ventilation and air conditioning operation and maintenance services to grow the building technical services business.”

Propel Global also has mid-to-long-term plans to venture into sustainable development and digital technology as part of the Group’s transition to a zero-carbon business focus that includes renewable energy and electrification.

About Propel Global Berhad
Propel Global Berhad is the listing vehicle that will take over the listing of Daya Materials Berhad on 28 April 2022. As part of the Group’s listing, Propel Global will acquire Daya Materials’ oil and gas (“O&G”) and building technical services assets. These O&G assets include services in pipe recovery for drilling operations, downhole data logging and processing as well as chemical blending and supply for both downstream and upstream operations. The building technical services business provides design, engineering, construction, project management and maintenance & management of commercial and industrial buildings and facilities on a single-source platform to a wide range of industrial clients.

For more information, please contact:
Hakim Syed Munif
Tel: +60 12-318 5410
Email: h.juraimi@swanconsultancy.biz