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DNeX off to a strong start in FY2023 with RM419.6 million in revenue and RM68.3 million in profit after tax in first quarter

Cyberjaya, 25 November 2022 – Dagang NeXchange Berhad (“DNeX”) has recorded solid performance in its financial results for the first quarter ended 30 September 2022 (“1Q FY2023”).

DNeX’s revenue grew by 55 per cent year-on-year (“YoY”) to RM419.6 million from RM270.9 million in the preceding year’s corresponding quarter (“1Q FY2022”), driven by higher contribution from the Technology and Energy businesses.

Revenue from DNeX’s Technology segment rose 85 per cent to RM274.7 million, making it the anchor revenue contributor to the Group, accounting for 65 per cent of total revenue. The improved performance was on the back of the consolidation of SilTerra’s three months financial results during the quarter, as compared to two months in 1Q FY2022.

Meanwhile, the Energy business made up 24 per cent of total revenue with RM101.6 million, followed by the Information Technology (“IT”) division contributing RM43.3 million or 10 per cent of total revenue.

For 1Q FY2023, the Group posted a profit after tax (“PAT”) of RM68.3 million, as compared to RM301.5 million in 1Q FY2022. Included in 1Q FY2022 PAT was a one-off negative goodwill of RM264.5 million from the acquisition of SilTerra. Excluding this, PAT for 1Q FY2023 increased by 85 per cent, and profit after tax and non-controlling interest improved by 44 per cent YoY.

“We are pleased to achieve solid performance despite the challenging operating environment, reflective of the strength of the Group. In view of the global economic uncertainties ahead, the Group will focus on optimising costs while maximising business value to ensure long-term sustainability,” said Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX.

“Furthermore, the strengthening of the USD is favourable to the Group with more than 80 per cent of the Group’s revenue transacted in USD. Particularly at SilTerra, we will continue to focus on investing in new emerging technologies that command higher average selling prices for long-term sustainability,” he said.

“Our Energy division is expected to benefit from stabilising Brent crude oil prices over the near term on the back of Russian oil sanctions and production cuts by OPEC+. We are keen to unlock the remaining economic reserves through infill drilling and facility debottlenecking. We are confident that our Energy business, anchored by Ping Petroleum Limited, will continue to grow as a Malaysian-led company and expand and unlock the potential of other assets within the United Kingdom (“UK”) and Southeast Asia region,” he added.

In the Group’s Information Technology division, newly introduced services under Trade Facilitation, which were previously in the pilot testing phase, have started to go live, according to Tan Sri Syed Zainal Abidin Syed Mohamed Tahir.

He said efforts to penetrate new geographical regions and convert projects in the pipeline to orderbook remain key priorities to strengthen DNeX’s market position as the preferred technology partner for all sectors.

DNeX’s balance sheet continues to remain healthy. As at 30 September 2022, the Group was in a net cash position with total cash of RM1.05 billion exceeding total borrowings of RM322.6 million.