KUALA LUMPUR (Aug 28): Energy solutions provider T7 Global Bhd (KL:T7GLOBAL) saw a 65.3% improvement in its net profit for the second quarter ended June 30, 2024 (2QFY2024) to RM10.62 million from RM6.43 million a year earlier, driven by improvements in both the energy and industrial solution segments.

This led to a higher earnings per share of 1.4 sen for 2QFY2024 compared with 0.82 sen for 2QFY2023.

Quarterly revenue also rose 44.2% to RM150 million from RM104.04 million a year earlier.

No dividend was declared for the current quarter under review.

For the cumulative six-month period (1HFY2024), T7 Global posted a 42.9% increase in net profit to RM15.24 million from RM10.67 million a year earlier, while revenue grew 42.7% to RM282.57 million from RM198.08 million in 1HFY2023.

In a statement on Wednesday, T7 Global group chief executive officer Tan Kay Zhuin said it is confident the energy segment and industrial solution segments will continue to drive the group’s performance, supported by multiple projects currently in the pipeline.

On the outlook for the upstream oil and gas (O&G) sector, T7 Global said it remains positive given the high O&G prices, increased capital expenditure spending and the reopening of China’s borders, despite concerns on the world economy and potential for a global recession.

"O&G remains as the group’s core business and the energy division will continue to bid and secure new contracts and be on the lookout for new opportunities in the Southeast Asian region," it said.

It noted that the aerospace industry has been affected by the Covid-19 pandemic and is expected to remain challenging for the next few years. However, T7 Global's aerospace division has managed to secure new international clients which will bring in recurring revenue to its metal surface treatment facility.

"The division will continue to pursue new clients and new orders in the aerospace industry given the recovery in travel demand in 2024," said T7 Global.

For the construction division, the group had secured the baggage handling system asset replacement programme at Terminal 1 of the Kuala Lumpur International Airport in December 2022. "We will focus on project execution and are expected to record satisfactory results in the coming years."

T7 Global said it is cautiously optimistic in its ability to achieve satisfactory results for the financial year ending Dec 31, 2024 due to its resilient order book and continued performance in project execution and operations.

“Looking ahead, we are optimistic about the prospect of our energy segment, with two mobile offshore production units contributing to the group. In the industrial solution segment, we remain focused on our airport baggage handling system project and our recent win of the airfield surveillance radar systems contract from the Ministry of Defence. These projects will reinforce our position as a leading integrated solutions provider,” said Tan.

T7 Global shares closed up half a sen or 1.05% at 48 sen on Wednesday, giving it a market capitalisation of RM388.34 million. The stock has risen 11.63% so far this year.