- Revenue grew by 22 per cent in Q1 2016 as compared to Q1 2015
- Net profit up three times quarter on quarter to RM4.7 million
Kuala Lumpur, 13 May 2016 – Dagang NeXchange Berhad (“DNeX”) today announced that it posted revenue of RM26.9 million in the first quarter of financial year 2016 (“Q1 2016”) or 22 per cent increase as compared to revenue of RM22.0 million in the first quarter of financial year 2015 (“Q1 2015”).
Net profit went up by 311 per cent to RM4.7 million in Q1 2016 as compared to RM1.1 million in Q1 2015, while its earnings before interests, taxes, depreciation and amortisation (“EBITDA”) in Q1 2016 improved by 69 per cent to RM8.3 million as compared to RM4.9 million in Q1 2015.
DNeX also announced an interim dividend of 1.0 sen per share under the single-tier system totaling RM7.752 million for Q1 2016.
DNeX’s solid performance was primarily driven by an increase in its Trade Facilitation business, and adoption and implementation of effective cost management and operational efficiency in all areas of business.
“We are pleased to report continued strong results following a major restructuring and refocus on leveraging our core IT competency to capture more work in Business-to-Government (“B2G”), Business-to-Business (“B2B”) and Business-to-Consumer (“B2C”) services. This has allowed us to maintain leadership in the provision of e-commerce services for Trade Facilitation,” said En Zainal Abidin Jalil, DNeX’s Group Managing Director.
“In addition, we have also accomplished significant building blocks in our diversification into the Energy sector to further enhance the group’s earning resiliency and maintain our growth momentum,” he added.
The Group on 27 January 2016 received shareholders’ approval on its RM170 million acquisition of the entire equity interest in OGPC Sdn Bhd and OGPC O&G Sdn Bhd – collectively known as OGPC Group.
More recently, on 27 April 2016, the Group received shareholders’ approval on its USD10 million-acquisition, through wholly-owned subsidiary company, DNeX Petroleum Sdn Bhd, of 30 per cent enlarged equity of Ping Petroleum Limited (“Ping”), an independent upstream oil and gas company that specialises in acquiring shallow water offshore producing assets with economic value that can be unlocked through improvement in costs, operations and asset management.
The Group’s entry into the Energy sector, according to Zainal, takes a medium to long term view whereby the prospect of Energy business remains positive in the long run. The strategic diversification is critical to improve earning resiliency as well as create long-term sustainable growth for the Group, he added.