- Revenue up by 34 per cent to RM49.5 million from RM36.8 million a year ago
- Net profit more than doubled to RM15.7 million from RM6.7 million in previous year
Kuala Lumpur, 21 November 2017 – Dagang NeXchange Berhad (“DNeX”) has announced a strong set of financial results for the third quarter ended 30 September 2017 (“3Q 2017”).
The Group’s revenue increased by 34 per cent to RM49.5 million from RM36.8 million in the previous year’s corresponding quarter, boosted by an increase in revenue contributions from both the IT & e-Services and Energy divisions.
Its net profit more than doubled to RM15.7 million from RM6.7 million a year ago.
For the nine months period ended 30 September 2017 (“9M 2017”), DNeX’s revenue grew by 28 per cent to RM142.4 million from RM111.1 million previously.
The Group’s net profit more than doubled to RM42.4 million from RM15.9 million (excluding one-off share of pre-acquisition gain of excess fair value of RM85.3 million from the acquisition in Ping Petroleum Limited).
The strong growth in 2017 to date is anchored by our core trade facilitation business as well as additional income streams from new projects and businesses that were successfully executed last year. Under the IT & e-Services division, the Group recognised new recurring income from the Vehicle Entry Permit and Road Charges (“VEP & RC”) operations and maintenance contract as well as processing of eWork Permit applications.
Its IT & e-Services division continued to be the main revenue contributor of the Group’s year-to-date revenue, contributing 69 per cent while the Energy division contributed the rest.
The Group’s Energy division was boosted by the consolidation of OGPC Group’s financial performance, expansion of oilfield drilling services and contribution from investment in Ping Petroluem Limited asset.
“Our commendable financial performance to date reflects the Group’s successful transformation to build a sustainable business with two core divisions, and our relentless focus on enhancing service offerings and execution of projects in our pipeline,” said Encik Zainal Abidin Jalil, Group Managing Director of DNeX.
“Moving forward, the Group is committed to deliver value to our shareholders by pursuing business opportunities that leverage on our core strength in the markets we operate in. We are now putting greater priority in execution and building a sustainable business,” he added.
As at end September 2017, the Group’s balance sheet continues to remain healthy and in a net cash position. Cash balance stood at RM70.8 million, exceeding total borrowings of RM17.5 million.