Cyberjaya, 27 May 2024 - Dagang NeXchange Berhad (“DNeX”) has recorded a positive start in the company’s new financial year with a profit after tax and non-controlling interest (“PATANCI” or net profit) of RM14.5 million for its first quarter ended 31 March 2024 (“1Q FY2024”).

In 1Q FY2024, the company registered RM309.8 million in revenue comprising RM138.0 million from its Technology segment, representing 45 per cent of total revenue. Its Energy business contributed RM105.9 million or 34 per cent of revenue and RM65.9 million came from its Information Technology (“IT”) business, representing 21 per cent of revenue.

DNeX’s revenue grew by nine per cent quarter-on-quarter (“QoQ”) to RM309.8 million in 1Q FY2024 from RM283.7 million in the preceding quarter (“6Q FY2023”), driven by higher contributions from the Energy and IT businesses.

There is no comparative for the quarter ended 31 March 2024, due to the change in the financial year end from 30 June to 31 December

The Group’s Technology division’s revenue stood at RM138.0 million, from RM145.4 million in the immediate preceding quarter weighed by lower average selling price on product mix despite higher wafer shipment.

Its Energy division’s revenue grew nine per cent QoQ to RM105.9 million, from RM97.2 million in the previous quarter driven by higher lifting volume and favourable oil prices, which rose to USD87.0 per barrel from USD81.9 per barrel.

The IT segment registered a 61 per cent growth in revenue to RM65.9 million, up from RM41.1 million, mainly due to completion of progressive work done of certain projects

According to Tan Sri Syed Zainal Abidin Syed Mohamed Tahir Jamalullail, Executive Chairman of DNeX, the Group is actively exploring opportunities to diversify its revenue streams to fuel its growth trajectory. This includes capitalising on DNeX’s competitive strengths across the three main business segments, expanding into profitable adjacent industry sectors, and leveraging strategic partnerships to enhance long-term financial performance.

“In our Technology business, we anticipate a rebound in the global semiconductor market in the later part of 2024 supported by recovery of consumer, automotive and industrial markets. To capitalise on this recovery, we are driving up efforts to attract high-quality customers and enhance our Silicon Photonic technology. Additionally, we are seeking to initiate a fast-tracked qualification process for products in emerging technology sectors, accelerating their time to the market,” he said.

In its Energy segment, the Group’s immediate priority is the reactivation of the Abu Cluster, located offshore Terengganu, Malaysia, with first oil production targeted for early 2025, with an anticipated volume of 2,500 barrels per day.

Ping operates a geographically diverse late-life oil and gas (“O&G”) portfolio, including assets in the UK (Anasuria, Avalon, and Fyne) and Malaysia (Meranti Cluster, A Cluster, and Abu Cluster).

“In our IT division, the Group is bidding for strategic and large-scale public and private sector IT projects in the domestic and international markets. Moreover, we have been operating the National Single Window for Trade Facilitation since 2009 and are optimistic about securing an extension when the current contract is due for renewal in August 2024. Leveraging on our proven capabilities, we look forward to playing a strategic role towards achieving the Malaysian Government’s aspirations to lead Malaysia’s digital economy forward,” said Tan Sri Syed Zainal Abidin Syed Mohamed Tahir Jamalullail.

As at 31 March 2024, the Group is in a healthy net cash position with total cash balance of RM630.6 million, exceeding total borrowings of RM252.4 million.