KUCHING: Reservoir Link Energy Bhd (RLEB) is poised to leverage its established expertise in oil and gas services and equipment (OGSE) sector while expanding into clean energy.
This, said the company, will reinforce its resilience in an evolving industry.
RLEB said as the energy landscape continues to shift, the company is well-positioned to benefit from both traditional and renewable energy opportunities.
“Malaysia’s oil and gas (O&G) upstream services segment could anticipate a stable outlook for the next three years, supported by crude oil price projections of US$70-US$80 per barrel, according to Petronas Activity Outlook 2025-2027.
“The number of wells to be drilled is expected to rise slightly in 2025, whereas plugging and abandonment activities is expected to dip in 2025 before rebounding from 2026 onwards. For the next three years, decommissioning plans include the plunging and abandonment of approximately 153 well and the abandonment of about 37 offshore facilities and one onshore facility relating to the section of the Sabah-Sarawak Gas Pipeline.
“Reservoir Link is actively participating in decommissioning tenders and is well-position to secure a portion of the upcoming works, leveraging its proven well intervention expertise,” said the company when commenting on the group’s prospects going forward.
RLEB said the group’s acquisition of a 30 per cent equity interest in Propel Maxflo Sdn Bhd last month marked a significant step in its growth strategy, strengthening its position in Malaysia’s O&G value chain while unlocking synergistic opportunities.
In the renewable energy sector, RLEB said the company had been selected, alongside Sumitomo Corporation and Maqo Engineering, as a solar power producer under the Corporate Green Power Programme.
It said this project is likely to open new avenue for Reservoir Link in sustainable energy.
“Further enhancing its renewable energy portfolio, Reservoir Link could benefit from Malaysia’s fifth Large Scale Solar (LSS) competitive bidding process which offers 2,000 MW of capacity. Thus, the group may expand its solar capacity, bolstering its revenue stream.”
In October 2024, RLEB’s 51 per cent-owned subsidiary Founder Group Limited (FGL) was listed on Nasdaq in the United States. Following the listing, RLEB’s shareholding in FGL was reduced to 45.21 per cent, making FGL an associate firm to the group. RLEB’s shareholdings in FGL were further diluted to 43.32 per cent following the exercise of warrants by shareholders on October 31.
“Nevertheless, this strategic Nasdaq listing is expected to enhance FGL’s access to capital and broaden its investor base, supporting its expansion and growth trajectory in the solar renewable energy sector.
“While the group will equity account for the FGL’s financial results moving forward, it is well-positioned to benefit from FGL’s growth, leveraging on the increased corporate visibility and financial flexibility that the Nasdaq listing brings.”
In the nine-month to March 31, 2025 (9m2025), RLEB chalked up group net profit of RM82.1 million from loss of RM333,000 in 9m2024, mainly resulted from a fair value adjustment of RM84.7 million on its investment in FGL. Earnings per share was 24.78sen as compared to losses per share of 0.11sen previously.
During the same period, group revenue, however, fell sharply to RM99.8 million from RM142.6 million.
The big revenue contraction was due mainly to a RM69.9 million reduction in revenue from the renewable energy’s engineering, procurement, construction and commissioning segment as the group only consolidated FGL until October 23,2024 following is listing on Nasdaq.
