KUALA LUMPUR (June 22): Propel Global Bhd (KL:PGB) is diversifying into property development with the launch of  a commercial project in Kuantan, with an estimated gross development value of RM64 million.

Known as Riverpoint, the project marks the company's maiden commercial property development venture and forms part of its strategy to expand beyond its traditional oil and gas and engineering-related businesses, Propel Global said in a statement on Monday.

Developed by wholly-owned subsidiary Propel Global Development Sdn Bhd, the development comprises 31 units of three-storey freehold shoplots along Jalan Tanah Putih, adjacent to the iconic "Welcome to Kuantan" arch, the company said.

"We aim to establish Riverpoint as a landmark commercial destination and a catalyst for the area's continued commercial growth, while generating sustainable value for our shareholders, business partners and the wider community," group chief executive officer Angeline Lee said in the statement.

The diversification comes as Propel Global continues to grapple with an uneven earnings track record.

The company slipped into the red for the year ended June 30, 2025 (FY2025) with a net loss of RM22.79 million on revenue of RM111.48 million. For the first nine months of FY2026 ended March 31, it recorded a net loss of RM17.44 million on revenue of RM56.98 million.

Prior to FY2025, Propel Global was profitable in FY2023 and FY2024. Previously, the company reported losses for nine consecutive years from FY2014 to FY2022.

Its balance sheet also remains leveraged, with cash and bank balances of RM14.01 million as at March 31, 2026, compared with short-term borrowings of RM9.06 million and long-term debt of RM24.99 million, translating into a net debt position.

Propel Global is principally involved in oil and gas services, pipe recovery and well intervention services. Its building technical services division provides engineering, construction, project management and maintenance services for commercial and industrial facilities.

The group has also outlined plans to venture into sustainable development and digital technology businesses as part of its longer-term transition towards a lower-carbon business model.

Shares of Propel Global closed half a sen or 8.3% higher at 6.5 sen on Monday, giving the company a market capitalisation of about RM54 million. The stock has fallen 27.8% over the past year.