Cyberjaya, 28 November 2024 – Dagang NeXchange Berhad (“DNeX”) has recorded a profit after tax and non-controlling interest (“PATANCI” or net profit) of RM9.1 million for its third quarter ended 30 September 2024 (“3Q FY2024”) on the back of a revenue of RM263.0 million. This marks an improvement compared to the RM5.0 million recorded in the immediate preceding quarter (“2Q FY2024”).
The Technology segment was the largest revenue contributor, generating RM161.5 million or 61 per cent of the total revenue. The Energy segment followed with RM52.4 million, contributing 20 per cent, while the Information Technology (“IT”) segment accounted for the remaining RM49.1 million, representing 19 per cent of the total revenue.
Revenue from the Technology segment rose by three per cent to RM161.5 million compared to RM156.2 million in 2Q FY2024 driven by higher average selling prices on the product mix.
Meanwhile, the Energy segment reported a softer revenue in 3Q FY2024 of RM52.4 million as compared to RM92.0 million in 2Q FY2024. The performance was primarily impacted by lower average oil prices (3Q 2024: 74.98/bbls; 2Q 2024: 85.30/bbls) and reduced lifting volume resulting from a planned well maintenance shutdown for maintenance purposes.
The IT segment delivered a revenue of RM49.1 million in 3Q FY2024 from RM50.0 million in 2Q FY2024. Subsea telco as well as technology consulting and system integration (“Tech Consulting and SI”) businesses recorded increased contributions due to completion of cable installation and repair work services, and progress milestone of the ongoing projects, respectively. This was however offset by lower revenue from trade facilitation in tandem with completion and progressive work done of certain projects.
DNeX’s net profit for the nine-month period ended 30 September 2024 amounted to RM28.6 million, with total revenue reaching RM871.0 million. Due to the change in the financial year-end from 30 June to 31 December, there is no year-on-year comparison available for the quarter.
In the Technology segment, SilTerra is strategically expanding its core offerings to meet the evolving needs of the market and capitalise on the semiconductor industry’s growth, focusing on emerging technologies such as Micro-Electronic-Mechanical Systems on Complementary Metal Oxide Semiconductor (“MEMS ON CMOS”), Life Sciences, Smart Power, and Silicon Photonics.
SilTerra has invested in the expansion of its manufacturing capabilities including installing new equipment and expanding its manufacturing facility, which will increase its capacity and broaden its customer base. Furthermore, the Group is actively exploring opportunities to establish new wafer fabrication and R&D facilities through government grants and subsidies under the National Semiconductor Strategy.
In the Energy segment, further revision to the UK Energy Profits Levy (“EPL”) policy have led Ping Petroleum to prioritise its Malaysian assets in the near term. A key near-term priority for the Group isthe reactivation of the brown field, Abu Cluster, targeting first oil production in the second half of 2025, at an anticipated rate of 2,500 barrels per day. At the same time, the Group is actively pursuing opportunities to acquire additional producing assets to enhance production levels and improve its overall performance. In the UK, Ping Petroleum continues to operate the producing Anasuria field, while planning for the develop ment of greenfield assets, Fyne, Avalon, Pilot, Glenn, and Hutton.
With Ping Petroleum’s portfolio expansion in Malaysia, OGPC – a service provider and distributor of technical equipment – is well positioned to benefit from the increased demand for its services, further expanding its business portfolio. In addition, OGPC is actively engaging potential customers to diversify its client base and grow its footprint within the oil and gas (“O&G”) industry.
In the IT segment, DNeX’s partnership with Google positions the Group to meet Malaysia’s growing demand for Sovereign and Managed Distributed Cloud Provider. By offering sovereign cloud services, DNeX addresses the increasing demand for secure and compliant cloud solutions, particularly in regulated industries and as a Managed Distributed Cloud Provider, DNeX can provide scalable infrastructure to clients, enabling them to meet their evolving needs.
DNeX is advancing its trade facilitation services through new software solutions that modernise and streamline processes, from document submission to the transmission of digital forms across borders. Additionally, the integration of AI into DNeX’s smart solutions can significantly enhance their capabilities and lead to increased operational efficiency and cost savings for both government agencies and private enterprises.
With a proven track record in successful project implementations, including the National Single Window for Trade Facilitation (“NSW”), Integrated Government Financial and Management Systems (“iGFMAS”), and the Hasil Integrated Taxation Systems (“HITS”), DNeX is well-positioned to support Malaysia’s transformation agenda and the MyDigital initiative.
DNeX’s Executive Chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir Jamalullail said, “As we reflect on our progress this quarter, we are encouraged by the continued strength of our diversified business model and the opportunities that lie ahead. Our focus remains on building a sustainable future by leveraging our expertise, expanding our capabilities, and embracing new technologies. We are committed to growth locally and internationally and are confident that our strategies will deliver long-term value for all stakeholders.”
As at 30 September 2024, the Group maintains a strong net cash position, with a total cash balance of RM476.3 million, surpassing its total borrowings of RM74.7 million.