Should You Be Adding Petra Energy Berhad (KLSE:PENERGY) To Your Watchlist Today?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

So if this idea of high risk and high reward doesn’t suit, you might be more interested in profitable, growing companies, like Petra Energy Berhad (KLSE:PENERGY). While profit isn’t the sole metric that should be considered when investing, it’s worth recognising businesses that can consistently produce it.

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In the last three years Petra Energy Berhad’s earnings per share took off; so much so that it’s a bit disingenuous to use these figures to try and deduce long term estimates. Thus, it makes sense to focus on more recent growth rates, instead. It’s good to see that Petra Energy Berhad’s EPS has grown from RM0.18 to RM0.20 over twelve months. That’s a 16% gain; respectable growth in the broader scheme of things.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it’s a great way for a company to maintain a competitive advantage in the market. Despite consistency in EBIT margins year on year, Petra Energy Berhad has actually recorded a dip in revenue. This does not bode too well for short term growth prospects and so understanding the reasons for these results is of great importance.

The chart below shows how the company’s bottom and top lines have progressed over time. Click on the chart to see the exact numbers.

KLSE:PENERGY Earnings and Revenue History June 26th 2025

See our latest analysis for Petra Energy Berhad

Petra Energy Berhad isn’t a huge company, given its market capitalisation of RM356m. That makes it extra important to check on its balance sheet strength.

It’s a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Petra Energy Berhad followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. To be specific, they have RM56m worth of shares. That’s a lot of money, and no small incentive to work hard. As a percentage, this totals to 16% of the shares on issue for the business, an appreciable amount considering the market cap.