Kuala Lumpur, 27 February 2018 – Dagang NeXchange Berhad ("DNeX") has announced a commendable set of results for the financial year ended 31 December 2017 ("FY2017").
In FY2017, the Group recorded RM204.0 million in revenue, an increase of 14 per cent from RM178.4 million in the financial year ended 31 December 2016 ("FY2016").
DNeX's FY2017 core profit after tax ("PAT") grew by 76 per cent to RM55.2 million from the restated core PAT of RM31.3 million in FY2016, excluding the one-off recognition of negative goodwill of RM88.9 million arising from the acquisition of Ping Petroleum Limited ("Ping") in FY2016.
"Trade Facilitation and Business-to-Business ("B2B") segments continue to serve as core revenue drivers of the Group. In addition, we made good progress during the year as the Group ventured into new business revenue streams across both our core business divisions," said Encik Zainal Abidin Jalil, Group Managing Director of DNeX.
The IT & e-Services segment saw maiden contribution from the Vehicle Entry Permit ("VEP") & Road Charge ("RC") operations and maintenance services contract as well as the provision of e-Work Permit, he said.
He added that the full year consolidation of OGPC Group ("OGPC"), the progress billings of the Portable Containers Supply ("PCS") contract and oilfield drilling services under the PETRONAS Carigali Sdn Bhd umbrella contract also contributed positively to the Group's Energy division.
"We expect FY2018 to be another exciting year as we leverage on our core competencies to broaden our service offerings. Furthermore, the extension of the National Single Window ("NSW") concession to August 2019 will augur well for the Group. We will also continue to undertake selective acquisitions to ensure growth and create shareholder value," he said.
"For our Energy division, we remain positive on the outlook as we expect recovery of oil prices to continue in 2018, spurring economic activity in the oil and gas space with the revival of capital expenditure and operational spending," he added.
As at 31 December 2017, DNeX continues to remain in a healthy net cash position with cash balances of RM51.8 million exceeding total borrowings of RM18.8 million.
For the fourth quarter ended 31 December 2017 ("4Q2017"), revenue stood at RM61.5 million while profit after tax stood at RM12.8 million. Included during the quarter is the final billing for the capital expenditure portion of the implementation of the VEP & RC system, and the progress billings of the PCS contract.