Cyberjaya, 27 February 2025 – Dagang NeXchange Berhad (“DNeX”) has reported a revenue of RM1.2 billion in its full-year financial results ended 31 December 2024 (“FY2024”), driven primarily by its Technology segment, which contributed RM627.3 million or 54 per cent of the overall revenue, followed by the Energy division with RM319.0 million, making up 27 per cent, and the Information Technology (“IT”) division with RM225.2 million, representing the remaining 19 per cent.
For its fourth quarter ended 31 December 2024 (“4Q FY2024”), DNeX recorded a 14 per cent quarter-on-quarter (“QoQ”) revenue growth to RM300.5 million as compared to RM263.0 million in the previous quarter (“3Q FY2024”). 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.
The Technology segment remained the key revenue contributor, generating a six per cent QoQ rise to RM171.6 million, or 57 per cent of total revenue, against RM161.5 million in 3Q FY2024. This was driven by a favourable average selling price (“ASP”), and higher wafer shipments. A stronger demand for emerging technologies, which accounted for 37 per cent of the product mix as compared to 25 per cent in 3Q FY2024 also contributed to the increase.
Similarly, the Energy segment demonstrated improved performance in 4Q FY2024, with a 31 per cent QoQ climb to RM68.7 million, contributing 23 per cent to the overall revenue, from RM52.4 million in 3Q FY2024. This growth was largely supported by higher lifting volumes albeit a slight decrease in the average oil price (Q4 2024: USD74.90/bbl; Q3 2024: USD75.90/bbl). Moreover, the lifting volume recovered in the current quarter, following planned well shutdowns for maintenance in the immediate preceding quarter.
Continuing this positive trend, the IT segment also saw a 23 per cent QoQ rise to RM60.2 million in 4Q FY2024, representing 20 per cent of total revenue, compared to RM49.1 million in 3Q FY2024 mainly due to the achievement of key milestones of ongoing projects.
Excluding the net reversal of impairment on assets and receivables, the Group reported an operating loss of RM38.8 million in the current quarter compared to operating profit of RM1.2 million in the immediate preceding quarter. This was primarily attributed to a net foreign exchange loss arising from fluctuations in the US Dollar and Pound Sterling from the Energy segment, and higher operating costs in the Technology segment.
The impact was partly offset by the IT segment’s operating profit, which increased by RM5.6 million for the quarter. This growth was mainly driven by a net forex gain of RM3.0 million (compared to a net forex loss of RM8.8 million in 3Q 2024), resulting from fluctuations in the Indonesian Rupiah against the Malaysian Ringgit, particularly affecting the Subsea Telco business.
DNeX’s Group Chief Executive Officer Encik Faizal Sham Abu Mansor said, “While our financial results reflect certain challenges, we remain focused on enhancing operational efficiencies across all key business segments. By strengthening our core capabilities and leveraging on high-growth opportunities, we are committed to building long-term resilience and ensuring DNeX’s sustainable performance.”
“As we navigate an evolving business landscape, our focus remains on optimising operations and enhancing efficiencies to navigate market conditions effectively and ensure long-term value for all our shareholders,” he said.
The outlook for the semiconductor segment remains positive. SilTerra’s recent capacity expansion is strategically aligned with the rising demand for emerging technologies, which are driving higher ASP. The Group is confident that the demand for these technologies will continue to grow, contributing to an increasing share of its product mix soon.
SilTerra is strategically expanding its Silicon Photonics capabilities to meet the growing market demand from data centres, where it provides high-speed, energy-efficient solutions for data communications. This cutting-edge technology is critical for powering next-generation applications, including AI infrastructure, cloud computing, and hyperscale data centres, delivering faster data processing with significantly reduced power consumption.
In addition to its advancements in Silicon Photonics, SilTerra is experiencing demand for MEMS on CMOS, Life Sciences, and Smart Power technologies that are integral to smart devices, biomedical applications, electric vehicles, and renewable energy systems. By driving efficiency, performance, and innovation, these technologies are empowering advanced applications across multiple industries.
In the Energy segment, the Group is focused on developing its Malaysian Energy assets, including the Meranti Cluster, A Cluster, Abu Cluster, and Small Field Asset (“SFA”) Cluster. A key priority is reactivating the brownfield Abu Cluster, with operational preparations progressing well as planned with first oil production targeted for the second half of 2025.
In the UK, Ping continues to operate the producing Anasuria field, while planning for the development of greenfield assets, Fyne, Avalon, Pilot, Glenn, as well as the rejuvenation of our brownfield Hutton asset. Meanwhile, OGPC Group, a service provider and distributor of technical equipment in the oil and gas sector, continues to focus on expanding its business portfolio and diversifying its client base as it strengthens its presence within the industry.
DNeX is expanding its IT capabilities through its strategic partnership with Google Cloud to meet Malaysia’s increasing demand for secure and compliant cloud solutions. In December 2024, the Group strengthened this commitment by forming a joint venture with Gamuda Berhad to become the sole provider of Google Distributed Cloud Services in Malaysia, targeting customers with the highest regulatory requirements, including government entities, financial institutions, and security-sensitive organisations.
DNeX is well positioned to strengthen its position as a leading IT solutions provider, driving Malaysia’s digital transformation forward backed by a proven track record in nationally critical IT projects such as National Single Window (“NSW”) for Trade Facilitation, Integrated Government Financial and Management Systems (“iGFMAS”), the Inland Revenue Board of Malaysia’s Hasil Integrated Taxation Systems (“HITS”) and Malaysian Administrative Modernisation and Management Planning Unit (“MAMPU”).