KUCHING: Reservoir Link Energy Bhd (RLEB) has recorded earning growth, with group net profit surging to RM1.22 million in the first quarter to Sept 30, 2023 (1Q2023) from RM428,000 in 1Q2022 on expanded revenue.
Group turnover jumped to RM67.7 million from RM42.4 million during the same period.
Earnings per share increased to 0.41 sen from 0.15 sen.
RLEB attributed the 63 per cent or RM26.3 million increase in group revenue in the current quarter under review to improved incomes from both renewable energy and gas segments by RM16.4 million and RM9.9 million respectively.
In line with higher revenue, the group’s pre-tax profit rose by RM1.2 million to RM3.79 million from RM2.56 million in 1Q2022, the company said in explanatory notes to its financial results.
The 1Q2023 financial results were also a marked improvement as compared to the immediate precedent quarter (4Q2022) when group revenue recorded was RM51.8 million and pre-tax profit was RM1.67 million.
“The group revenue for the current quarter increased by RM15.9 million or 31 pct as compared to the previous quarter. The increase in revenue from the renewable energy segment by RM10.1 million and from the oil & gas segment by RM5.8 million in the current quarter.
“The group pre-tax profit improved by RM2.1 million in the current quarter. The increase in pre-tax profit was due to higher revenue. It should be noted that the one-off cost such as corporate exercises at RM1.3 million and general provision of expected credit loss amounting to RM0.7 million were charged in the previous quarter,” said RLEB.
Commenting on prospects, the company said the uncertainty in the energy market will continue and this necessitates industry players to be agile in responding to the changes in the energy landscape and embrace innovation as well as new solutions towards a lower-carbon future.
“The outlook for the oil and gas sector remains positive for upstream activities, such as drilling rigs, well services activities and underwater services due to the repair and maintenance activities required to maintain the integrity of offshore facilities. A few contracts awarded by Petronas and Petroleum Arrangement contracts (PACs) to the group showed a positive outlook on oil & gas activities in 2023.
“The group’s 51%-owned subsidiary Founder Group Limited (FGL) is considering listing on the Nasdaq stock exchange which represents a strategic step for FGL, will offer enhanced financial flexibility through a new fund-raising platform to accelerate the expansion and growth trajectory for its solar renewable energy.
“By leveraging on the Nasdaq stock exchange, FGL will also be able to improve its corporate image and visibility to penetrate a wider market thereby broadening both the existing client and investor base,” said RLEB.
In 2023, RLEB group has secured five contracts, and these are:
(1) Letter of award from Atlantic Blue Sdn Bhd for engineering, procurement, construction and commissioning (EPCC) for the interconnection facility for the development of a large-scale solar photovoltaic plant of 50.00 MWac in Selambau, Kedah;
(2) Letter of award from Fabulous Sunview Sdn Bhd for the supply of mounting structure for large-scale solar photovoltaic plant development in Malaysia;
(3) Letter of award from Hibiscus Oil & Gas Malaysia Ltd for the provision of slackline perforation and specialised service for three years from July 3, 2023, to July 2, 2026;
(4) Letter of award from Petronas Carigali Sdn Bhd for the provision of annulus wash and cement assurance equipment and services for M1 and Anding campaigns from July 11, 2023 until estimated completion period of 18 months, and (50 Letter of award from Samaiden Sdn Bhd for the subcontract works of large-scale solar photovoltaic plant 50MWac solar photovoltaic plant at Sungai Petani, Kedah.
RLEB said the group continues to actively participate in tenders for oil & gas and renewal energy projects. In addition, the group will implement its business strategies cautiously to sustain its growth to deliver a satisfactory performance in the current financial year.
On Nov 14, 2023, RLEB announced that its wholly-owned subsidiary, Reservoir Link Renewable Sdn Bhd has entered into a share sale agreement with SAG Green Tech Sdn Bhd to acquire 100% equity interest in SAG Renewable Sdn Bhd for RM10.5 million.
Updating the progress of the company’s proposed private placement, RLEB said the company has completed the first two tranches involving the issuance of about 11.51 million placement shares and 14.87 million placement shares on August 2 and September 23, 2023, respectively.
The company obtained approval from Bursa Securities on Nov 9, 2023, for the extension time up to May 7, 2024, to complete the private placement, which entails the issuance of up to 86.71 million shares, representing not more than 30 per cent of the company’s total number of issued shares.
Under the proposed employees’ share option scheme (ESOS), the company granted about 4,934,700 options at the exercise price of RM0.2756 each to eligible employees in May 2023.
