- The Group’s revenue at RM95.5 million in FY2015 performed upwards as compared to RM86.8 million in FY2014
- The company maintains strong profitability with profit after tax of RM15.8 million
Kuala Lumpur, 26 February 2016 – Dagang NeXchange Berhad (“DNeX”) today reported upward business performance for the financial year ended 31 December 2015 (“FY2015”), continuing its growth momentum after a return to profitability in the financial year ended 31 December 2014 (“FY2014”).
For the full year FY2015, the Group posted RM95.5 million in revenue as compared to RM86.8 million in FY2014, an improvement of about ten per cent. The Group posted profit after tax of RM15.8 million in FY2015 as compared to RM17.8 million in FY2014.
The Group’s constant positive earnings before interests, taxes, depreciation and amortisation (“EBITDA”) of RM34.7 million in FY2015 and RM39.2 million in FY2014 had contributed the necessary funding for the Group to grow its business portfolios in both Energy and Information Technology sectors when opportunities arise. The Group’s performance in FY2015 was also affected by a one-off payment of RM5.7 million to undertake a staffing rationalisation exercise in the first quarter of that year.
DNeX’s strong performance in FY2015 was mainly driven by an increase in its Trade Facilitation business, and adoption of effective cost management and operational efficiency in all areas of business. Moreover, the Group’s diversification into the Energy sector also started to register revenue through rental of directional drilling equipment starting in the second quarter of FY2015.
“As we move forward, we remain committed to deliver business innovation, especially in Trade Facilitation and e-commerce, that creates stakeholders’ value, staying true to our corporate mission, and which will also drive our growth momentum,” said En Zainal Abidin Jalil, DNeX’s Group Managing Director.
He said DNeX’s diversification into the Energy sector accomplished a significant building block when the Group on 27 January 2016 received shareholders’ approval on its RM170 million acquisition of the entire equity interest in OGPC Sdn Bhd and 52 per cent equity interest in OGPC O&G Sdn Bhd – collectively known as OGPC Group – which is a leading provider of equipment and services for oil and gas, petrochemical and power and general industries. OGPC O&G Sdn Bhd is a 48 per cent-owned associate company of OGPC Sdn Bhd.
According to him, the Group’s entry into the Energy sector takes a medium to long term view whereby the prospect of Energy business remains positive in the long run, despite current low crude prices.
He added that DNeX is at the same time growing its IT business through continuous efforts in providing end-to-end, comprehensive e-commerce services for Trade Facilitation particularly expanding on Business-to-Government (“B2G”) services to Business-to-Business (“B2B”) services.
A key development for its IT business in FY2015 is the appointment of the Group, through wholly-owned subsidiary company Dagang Net Technologies Sdn Bhd, by the Royal Malaysian Customs Department as the uCustoms Service Provider that will front the trade community by providing access to Trade Facilitation services, he said.
“We are also in a strong position to expand our reach and capitalise on a growing demand for adoption and implementation of e-commerce and IT services to boost efficiency of processes,” he added.