T7 Global Shares Plummet as Executive Deputy Chairman Resigns

T7 Global Shares Tumble to Two-Year Low Following Leadership Exit

KUALA LUMPUR (April 2): Shares of T7 Global Bhd (KL:T7GLOBAL) fell on Wednesday to a two-year low after the oil and gas services firm announced the departure of its executive deputy chairman.

Sharp Market Reaction to Surprise Leadership Change

T7 Global Bhd, a Malaysian oil and gas services provider, witnessed a significant drop in its share price, hitting a two-year low on Wednesday, April 2. This sharp decline came immediately after the company announced the unexpected resignation of its Executive Deputy Chairman, Tan Sri Mohd Akhir Abdul Hamid, raising concerns among investors about future leadership stability and business continuity. According to Bursa filings and market data, shares of T7 Global dropped nearly 13% during the first half of market trading, reaching their lowest level since 2022. This steep fall highlights the market's sensitivity to shifts in company leadership, especially key positions held by influential board members with deep industry knowledge and strategic importance.

Details of the Leadership Departure

In a brief corporate update submitted to Bursa Malaysia, T7 Global confirmed that Tan Sri Mohd Akhir had resigned from his post effective March 29, 2024. The company cited "other personal commitments" as the official reason for his departure. The resignation comes as a surprise, considering Mohd Akhir had been with the company for several years and was considered a cornerstone of T7 Global’s transformation into an integrated oilfield services player. Mohd Akhir was pivotal in:

• Overseeing the company’s expansion in upstream and downstream project tenders
• Driving diversification into defense and aerospace sectors
• Strengthening stakeholder relationships and regulatory compliance

His departure raises immediate questions regarding strategic continuity and project execution as the company continues to operate in an increasingly competitive and volatile energy market.

Who Will Fill the Gap?

As of now, no immediate successor has been declared by the company. The leadership vacuum may take time to fill, and this uncertainty has clearly shaken investor confidence. "There is currently no indication of a succession strategy in the announcement. This lack of transparency affects market sentiment negatively," said a Kuala Lumpur-based equities analyst. Without a clearly designated successor or interim figure, stakeholders are left to speculate not only about internal governance challenges but also potential shifts in company strategy and project execution timelines.

Impact on Investors and Market Sentiment

T7 Global's share price dip is more than just a routine market correction; it reflects a loss of investor confidence in the company's short-term prospects. At the time of publication, the stock sat at 32 sen — marking its lowest point in the past 24 months. Year-to-date (YTD), T7 Global shares have now fallen by more than 18%, underperforming the broader Bursa Malaysia Energy Index, which has remained relatively stable over the same period. Market analysts have indicated the following contributing factors behind the bearish sentiment:

• Leadership Instability: The sudden departure of a senior executive without a clear succession plan.
• Lack of Communication: Sparse details about future strategies or structural shifts post-resignation.
• Sector Volatility: The oil and gas sector remains volatile due to fluctuating crude oil prices and global economic uncertainty.

Ongoing Projects and Business Outlook

T7 Global has been actively involved in multiple high-visibility projects both locally and internationally. Its business portfolio spans:

• Offshore and onshore upstream oilfield services
• Maintenance and turnaround operations
• Aerospace and defense sector engineering

Just last year, T7 Global was awarded multiple contracts under Petroliam Nasional Berhad (PETRONAS) worth a combined RM300 million. However, it remains unclear how the recent shake-up in the executive board will influence the performance or execution timelines of these key revenue-generating projects.

Is T7 Global's Diversification Strategy at Risk?

The company has been venturing into aerospace and defense, reflecting an effort to diversify income streams beyond traditional oil and gas contracts. With Mohd Akhir often portrayed as one of the leading advocates for these diversification initiatives, his exit could herald a period of recalibration or even undoing of previously-set strategic directions. "Investors will be closely monitoring the direction the new leadership chooses — if and when one is named," noted another industry insider.

Financial Position: Can the Company Withstand the Pressure?

Despite the recent turbulence, T7 Global’s most recent quarterly earnings report showed moderate stability. The company reported:

• Revenue: RM140.7 million for the quarter ending December 31, 2023
• Net Profit: RM7.8 million, showing a year-on-year improvement of 12%
• Cash Reserves: Still deemed healthy at RM55 million

While these figures suggest a financially solvent company, the real test will come from how T7 Global's leadership — old or new — manages to navigate the post-departure phase and reassure its shareholders.

What’s Next for T7 Global?

The company has remained tight-lipped since the announcement, providing no investor briefings and avoiding public comments. Nevertheless, regulatory filings show that no major insider trades have followed the resignation, indicating no immediate threat of internal shareholder panic. Industry experts argue that, to restore confidence, T7 Global needs to:

• Appoint an interim or permanent replacement as soon as possible
• Reaffirm its commitment to ongoing projects and diversification strategy
• Provide more transparency on the future board and governance structure

Until such concrete actions are taken, the market may continue to penalize the stock, as uncertainty remains a key risk factor for investors.

Conclusion: A Leadership Void Amid Strategic Growth

The departure of Executive Deputy Chairman Tan Sri Mohd Akhir from T7 Global comes at a pivotal moment for the company. As it seeks to scale and diversify, this leadership vacuum contributes to instability, forcing a reevaluation of both internal and external strategies. The market has reacted accordingly, with a sharp sell-off affecting its valuation. Looking forward, how swiftly — and wisely — T7 Global responds to this challenge could determine whether the company can regain its growth momentum and rebuild investor trust. What is clear for now is that T7 Global stands at a critical crossroads. For retail and institutional investors, the coming weeks will be key. With no political undertones to this leadership shake-up, the focus squarely remains on corporate governance and execution strategy. Investor takeaway: Watch this space — leadership matters, and T7 Global’s next moves will likely set the tone for its market performance throughout 2024.