- Revenue grew by 14 per cent in 1H 2015 as compared to 1H 2014
- EBITDA remains strong year-on-year
- Oil, gas and energy diversification contributes to revenue
Kuala Lumpur, 27 August 2015 – Dagang NeXchange Berhad (“DNeX”) today announced that it posted revenue of RM44.6 million in the six months ended 30 June 2015 (“1H 2015”) or 14 per cent increase as compared to revenue of RM39.2 million in the six months ended 30 June 2014 (“1H 2014”).
Its earnings before interests, taxes, depreciation and amortisation (“EBITDA”) and one-off payment of staffing rationalisation exercise in 1H 2015 rose 25 per cent to RM21.7 million from RM17.4 million in 1H 2014. The Group registered a profit after tax of RM7.0 million in 1H 2015 as compared to its profit after tax of RM8.0 million in 1H 2014.
The Group’s profit after tax was affected by a one-off payment of RM5.7 million to undertake a staffing rationalisation exercise in the first quarter of financial year 2015 (“Q1 2015”), aimed at achieving organisational effectiveness for more efficient operations.
Its performance in the quarter ended 30 June 2015 (“Q2 2015”) also fared well with revenue, EBITDA and profit after tax of RM22.6 million, RM11.0 million, and RM5.9 million, respectively as compared to revenue of RM20.6 million, EBITDA of RM9.9 million and profit after tax of RM4.8 million in the same period last year.
DNeX’s sustained growth was attributed to a strong performance of its Trade Facilitation business, where the Group is committed to provide end-to-end, comprehensive e-commerce services for Business-to-Government (“B2G”) to Business-to-Business (“B2B”) segments locally as well as regionally.
The Group, through subsidiary company Dagang Net Technologies Sdn Bhd, has recently been appointed by the Royal Malaysian Customs Department as the uCustoms Service Provider that will front the trade community by providing access to Trade Facilitation services.
In Q2 2015, DNeX’s diversification into oil, gas and energy has also borne early achievements by starting to register revenue in less than a year after the Group announced its diversification plan.
“We are confident that we are on the right track in our diversification into oil, gas and energy as we strive to achieve more milestones in months to come thus setting our journey as a serious player in this sector. During this current market downturn, oil and gas sector presents attractive opportunities to build scale as cost of entry is lower,” said En Zainal Abidin Jalil, Group Managing Director of DNeX.
The completion of the Group’s proposed acquisition of OGPC Group is expected in fourth quarter 2015, and is projected to contribute positively to its future earnings and enhance shareholders’ value in the medium to long term.