KUCHING: Reservoir Link Energy Bhd’s (RLEB) wholly-owned subsidiary Reservoir Link Sdn Bhd (RLSB) has been awarded a contract for the perforation equipment and services for well intervention, work over and P&A campaigns (Package A6) by EnQuest Petroleum Production Malaysia Ltd.
The two-year contract is from November 10, 2025 to November 9, 2027 unless further extended as mutually agreed in writing between the parties.
“The contract is on a call-off basis and the total value of the contract shall be based on actual satisfactory works completed by RLSB,” said RLEB in a filing with Bursa Malaysia.
RLEB said the contract is expected to contribute positively to the group during the contract period.
Meanwhile, RLEB reported a sharp drop in group revenue to RM25.4 million in first quarter ended September 30, 2025 (1QFY2026) against RM42.9 million in 1Q2024. This dragged the group net profit down to RM155,000 from RM684,000.Earnings per share were down to 0.04sen from 0.22sen.
In the current quarter under review, the oil & gas related activities segment generated revenue of RM22.63 million, followed by wastewater treatment related activities segment (RM2.77 million), investment holding (RM1.41 million) and renewable energy related and other activities segment (RM438,000).
Year-on-year, group revenue fell by RM17.5 million (-41%) due mainly to an RM18.8 million drop in the turnover of the renewable energy EPCC segment as the group only consolidated Founder Group Limited (FGL) until October 23, 2024, following its listing on NASDAQ. Following the listing, RLEB’s shareholding in FGL was diluted to 45 per cent from 51 per cent.
The oil & gas segment improved its revenue by RM2.1 million, driven by higher activity levels in the current quarter.
Commenting on prospects, RLEB said the group’s position in the Malaysian upstream market strengthened further following its appointment as a panel contractor under Petronas’s integrated well continuity services (IWCS) umbrella contract.
“This places Reservoir Link among select service providers entrusted to deliver comprehensive well intervention, workover, abandonment and subsea solutions. The contract enhances visibility on upcoming work scopes and positions the group to secure higher recurring orders throughout FY2026 and FY2027.”
Regionally, RLEB said the group is progressing with the acquisition of the remaining equity in Propel Mafflo Sdn Bhd, following the initial strategic purchase of a 30 per cent stake on May 2, 2025.
“Full ownership will provide direct access to Propel Maxflo’s established operations in Saudi Arabia and Bahrain, deepening the group’s entry into the Middle East, a key growth market experiencing rising investment in well services and production optimisation. Integration efforts underway in Q12026 are focused on aligning operations, technology synergies and customer strategies to accelerate international growth,” it added.
On the country’s renewable energy sector, RLEB said it continues to benefit from strong policy momentum under Malaysia Renewable Energy Roadmap and National Energy Transition Roadmap (NETR) which targets 70 per cent renewable energy capacity by 2050.
Over the past 12 months, the Energy Commission has released 4 GW of solar quota under LSS5 and LSS5+ while SEDA expanded rooftop solar access via additional NEM allocations.
“These initiatives support the group’s solar EPCC pipeline and reinforce long-term visibility for construction activities. In 1QFY2026, preparatory works for the 800MW corporate green power programme (CGPP) progressed where Reservoir Link is participating a solar power producer in collaboration with Sumitomo Corporatoon and Maqo Engineering. The programme is expected to drive meaningful EPCC revenue contribution once execution ramps up in subsequent quarters.
“Looking forward, the upcoming LSS6 programme, anticipated to offer at least 2GW of capacity incorporating battery energy storage systems (BESS) and a community renewable energy aggregation mechanism (CREAM), is expected to further expand market opportunities. These developments positions Reservoir Link favourably to grow its EPCC footprint and accelerate its strategy of building a 100MW renewable energy asset portfolio by 2027,” said the company.
RLEB said the group’s sustainable ventures segment also continues to gain traction. In particular, the wastewater treatment operations in Indonesia have provided recurring contributions, and scheduled waste recovery projects under RL Sigma remain aligned with the with the circular economy agenda set out under NETR.
“Overall,1QFY2026 reflects steady progress across the group’s diversified portfolio. With a balanced business model, expanding regional reach, and disciplined execution of its strategic priorities, Reservoir Link remains focused on delivering sustainable earnings performance while contributing meaningfully to Malaysia’s broader energy transition goals,” it added.
