KUALA LUMPUR: T7 Global Bhd's net profit increased more than two-fold year-on-year (YoY) to RM4.15 million in the third quarter (Q3) ended September 30, 2021, from RM1.80 million recorded a year ago.

In an exchange filing today, the energy solutions provider said this was on the back of higher contributions from engineered equipment integrated well services and operations and maintenance businesses for the energy segment.

Its Q3 revenue surged 69 per cent YoY to RM64.62 million from RM38.28 million, underpinned by recovery in oil and gas activities in the region having a positive impact on its ongoing projects.

For the cumulative nine-month period, T7 Global's net profit surged 138.7 per cent to RM7.40 million from RM3.10 million, while its revenue increased 38.6 per cent to RM171.03 million from RM123.44 million.

Chairman Datuk Seri Dr Nik Norzrul Thani N Hassan Thani said the group's energy division continued to perform well despite the Covid-19 pandemic. 

"The successful completion of the Plug and Abandonment Integrated Services for Pulai-A project, which saw five wells plugged and abandoned safely and ahead of time," he said in a separate statement today.

He said the group's aerospace and defence and construction divisions' activities had also picked up.

He said the group's energy division would likely remain as the key profit driver for the company.

"We continue to see strong demand for our energy solutions, underpinned by the positive outlook of the oil and gas industry in the region.

"We were recently awarded the work order by Petronas Carigali Sdn. Bhd. to plug and abandon ten wells for the M3 oilfield. 

"This is our second project in succession under the Pan Malaysia Umbrella Contract. We are hopeful for a third project in the coming year."

He said  the award by the PTTEP group of companies for Gastec On-site Nitrogen Generation System showed the company's continuous commitment to provide after sales service and life-cycle solutions at their facilities. 

The combined value of the contracts are estimated to be about RM150 million. 

T7 Global said the Bayan Mobile Offshore Production unit project was on track and expected it to be commissioned latest by Q3 of 2022, where it will start to contribute positively to the group's bottom line next year.

"Our construction division continues to deliver due to ongoing projects such as Endau Mersing Fish Processing Park.

"Our aerospace and defence division business is also picking up where our metal surface treatment facility has received more orders from local and international customers in Q3 of 2021, which is increasing our facility utilisation rate."

He said the board was confident of achieving better financial performance for the financial year ending December 31, 2021 and 2022 due to the improvement in all three business divisions and its resilient order book.

Currently, T7 Global has an outstanding order book of RM2 billion, which will keep the company busy for the long-term. 

The company is pursuing for several projects which include, amongst others, oil and gas and construction engineering, procurement, and construction (EPC) projects worth RM3 billion.

Meanwhile, the board proposed a bonus issue of warrants on a ratio of one free warrant for every five existing shares held, at an entitlement date to be determined later. 

The warrant is aimed at rewarding shareholders for their continuous support by enabling them to participate in a derivative of the company without incurring any cost. 

"The proposed bonus warrants will provide T7 Global with additional working capital and strengthens the company's capital base as and when the warrants are exercised.

"The proposal is expected to enhance shareholders' value as T7 Global has clear earnings visibility ahead coupled with an improving financial performance," it said.