Cyberjaya, 26 November 2021 – Dagang NeXchange Berhad (“DNeX”) has announced a strong set of financial results for the first quarter ended 30 September 2021 (“1Q FY2022”).
The strong financial performance in 1Q FY2022 was largely driven by the maiden consolidation of the Group’s strategic investments in SilTerra Malaysia Sdn Bhd (“SilTerra”) and Ping Petroleum Limited (“Ping”) which were completed on 26 July 2021 and 30 June 2021 respectively.
There are no year-on-year comparative figures due to the change in the financial year end from 31 December to 30 June.
For the quarter under review, DNeX reported a revenue of RM270.9 million, of which the new Technology segment that includes SilTerra, stood as the largest contributor at RM148.8 million or 55 per cent of total revenue. This was followed by Energy segment with RM78 million revenue or 29 per cent and the remaining from Information Technology segment, accounting for RM44.1 million or 16 per cent.
DNeX registered a significantly improved profit after tax (“PAT”) of RM301.5 million, mainly attributed to the fair value of the net identifiable assets and negative goodwill from the acquisition of SilTerra amounting to RM264.5 million. Excluding this, the normalised PAT stood at RM41.3 million.
“The Group’s strong set of financial results in 1Q FY2022 is testament to the success of the Group’s transformation strategy whereby we embarked on strategic investments to capitalise on the robust semiconductor industry and recovery cycle of the oil and gas (“O&G) industry. It is an encouraging start to the year as SilTerra reports a turnaround to profitability from transformation initiatives implemented to enhance manufacturing processes and optimise efficiencies. In addition, higher crude oil prices have benefitted Ping, a low-cost O&G upstream operator,” said Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX.
“With the reopening of the economy, rise in global demand for semiconductor chips, as well as increased activity in the oil and gas and cross border trade sectors, we are confident that the strategies implemented to grow and strengthen our core businesses will lead to an even better performance in the coming quarters,” he said.
DNeX and its partner Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (Limited Partnership) will continue efforts to enhance SilTerra’s competitive edge. Key focus areas will be on removing bottleneck, improving plant utilisation rate and efficiency, streamlining product portfolio and working towards securing more long-term contracts.
The Group is also exploring opportunities to unlock Ping’s untapped potential and maximise economic value from its asset portfolio by rejuvenating existing wells to monetise economically attractive reserves in the Anasuria Cluster. It also intends to develop its first greenfield project, Avalon, as part of diversifying its asset portfolio.
In tandem with the recovery of trade volume and increase in global IT spending, the Group will be enhancing its Trade Facilitation related eServices and digital solutions in the Business-to-Government and Business-to-Business segments to further strengthen its position as the preferred technology partner for all sectors.