KUALA LUMPUR (Nov 19): ACE Market-listed Reservoir Link Energy Bhd's net profit for the third quarter ended Sept 30, 2021 (3QFY21) ballooned more than nine-fold to RM5.84 million from RM630,000 a year earlier, on higher revenue.

In a bourse filing on Friday (Nov 19), the energy-related service provider said revenue for the quarter surged 46.57% to RM38.19 million from RM26.06 million a year prior, mainly due to recognition of mobilisation fees for the Mauritania project and contribution from its solar renewable energy division.

Its solar renewable energy division, via its newly acquired subsidiary Founder Energy Sdn Bhd, reported a maiden revenue contribution of RM6.38 million, while its oil and gas (O&G) services segment's revenue jumped to RM31.8 million from RM25.99 million a year ago.

Earnings per share jumped to 2.04 sen from 0.22 sen previously.

It did not declare any dividend for the period, bringing total dividend for the nine months ended Sept 30, 2021 (9MFY21) to 0.5 sen. The group did not declare any dividend last year.

For the cumulative nine-month period, Reservoir Link's net profit rose 133.24% year-on-year to RM9.89 million from RM4.24 million on the heels of a 20.1% increase in revenue to RM78.61 million against RM65.45 million previously.

In a separate statement, Reservoir Link executive director Thien Chiet Chai said the group remains optimistic about the outlook of the solar renewable energy sector as it expects this segment to contribute positively to Reservoir Link.

"Despite the current uncertain times, we do see light at the end of the tunnel as economies recover and global demand for O&G remains relevant. With that said, the group remains positive about the O&G business outlook with a stable oil price and expectations of an increase in demand for O&G.

"We will continue to actively partake in tenders for O&G well-related services as well as solar renewable energy projects," he added.

Additionally, Thien also said that the group's progress has been phenomenal as it pivoted into the solar renewable energy industry.

"We will continue to implement our strategic plans to generate long-term value for our stakeholders. It has just been over a year since our debut on the ACE Market and Reservoir Link is currently undertaking the proposed transfer to the Main Market of Bursa Malaysia Securities Bhd," he said.

Reservoir Link's share price closed two sen or 3.6% higher at 57.5 sen, giving it a market capitalisation of RM168.5 million.