Kuala Lumpur, 9 June 2016 – Dagang NeXchange Berhad (“DNeX”) is hitting key milestones in its diversification into Energy while at the same time strengthening its leadership in providing e-commerce services for Trade Facilitation thus fully leveraging on two core revenue pillars.
In its diversification into the Energy sector, DNeX has managed to achieve one of the critical building blocks when shareholders approved the Group’s proposed acquisitions of the entire equity interest in OGPC Sdn Bhd and OGPC O&G Sdn Bhd – collectively known as OGPC Group for RM170 million on 27 January 2016.
On 27 April 2016, shareholders had approved DNeX’s USD10 million-acquisition, through wholly-owned subsidiary company, DNeX Petroleum Sdn Bhd, of 30 per cent enlarged equity of Ping Petroleum Limited (“Ping”), an independent upstream oil and gas company that specialises in acquiring shallow water offshore producing assets with economic value that can be unlocked through improvement in costs, operations and asset management.
Both of these acquisitions are expected to be completed in the third quarter of 2016.
Encik Zainal Abidin Jalil, Group Managing Director of DNeX said, “Our acquisitions in the Energy sector come at an opportune time as we were able to benefit from lower entry costs. Upon completion of the Energy acquisitions, the additional revenue stream to the Group will contribute to DNeX’s growth potential and earnings resiliency over the medium to long term.”
“At the moment, our IT division continues to be the major contributor to the Group’s revenue. In the financial year ended 31 December 2015, revenue from the IT division contributed 97 per cent to the Group’s total revenue. Once the acquisitions of OGPC Group and Ping Petroleum are completed, we expect the revenue composition between the IT and Energy division to be more balanced,” he added.
DNeX is at the same time growing its IT business through continuous efforts in providing end-to-end, comprehensive e-commerce services for Trade Facilitation particularly expanding on Business-to-Government (“B2G”) services to Business-to-Business (“B2B”) services. The Group is also intensifying efforts in the Business-to-Consumer (“B2C”) segment through its Global Halal Exchange eMarketplace.
As testament to the Group’s leading position and more than 25 years of experience in providing e-commerce services for Trade Facilitation, the Group had been appointed by the Royal Malaysian Customs Department as the uCustoms Service Provider. uCustoms is a fully integrated, end-to-end, Customs modernisation solution that delivers Single Window for goods clearance.
“We are also in a strong position to expand our reach and capitalise on a growing demand for adoption and implementation of IT to boost efficiency of processes of companies and organizations through our Solution Integration services,” said Zainal.