KUALA LUMPUR (June 30): Oil and gas (O&G) service provider T7 Global Bhd's net profit improved by 51.1% to RM331,000 for the first quarter ended March 31, 2020 (1QFY20), from RM219,000 a year ago, on lower tax expenses.

However, earnings per share were lower at 0.23 sen for 1QFY20, compared with 0.27 sen for 1QFY19, due to dilution of shares following completion of the private placement exercise on March 6.

Revenue for the quarter fell 13.3% to RM48.78 million, from RM56.27 million, dragged by a lower revenue contribution from its products and services division which fell 42.6% year-on-year.

In view of current sustained oil prices and uncertainties affecting the global market demand, T7 Global said the O&G sector is expected to remain challenging in 2020.

"The O&G division will remain as the group’s core business. The group will continue to bid for new contracts and look for industry opportunities where T7 Global and our strategic alliances possess the relevant expertise and experience to venture into.

As for its aerospace division, the industry has also been affected by the Covid-19 pandemic and is expected to remain challenging in 2020 as well.

The group is currently exploring opportunities to provide metal surface treatment services to other relevant industries that require such services, such as healthcare, automotive and the semiconductor sector.

T7 Global executive deputy chairman Tan Sri Tan Kean Soon said it will continue to focus on projects in the energy sector and look into new ventures for potential business growth.

“The group still has ample work from our outstanding order book of approximately RM1.7 billion, which will definitely keep us busy for the next 10 years. Meanwhile, we will actively bid for more energy projects to replenish the order book. We expect to continue this momentum going forward as we work hard to create value for our stakeholders and shareholders alike.”

At 2.59pm, T7 Global shares were up 1.5 sen or 4.05% at 38.5 sen, bringing it a market capitalisation of RM204.76 million. A total of 549,500 shares were traded.