Cyberjaya, 27 November 2023 – Dagang NeXchange Berhad (“DNeX”) has announced its financial results for the fifth quarter ended 30 September 2023 (“5Q FY2023”), delivering another profitable quarter amidst challenging business landscape.
In 5Q FY2023, the Group reported a net profit of RM13.3 million on the back of RM327.4 million in revenue. The Technology division remains the main contributor to DNeX’s topline, contributing 48 per cent to total revenue, while the Energy and Information Technology (“IT”) divisions contributed 35 per cent and 17 per cent respectively to revenue.
In 5Q FY2023, the Group's Technology division achieved a revenue of RM157.2 million compared to RM128.1 million in 4Q FY2023, driven by both higher wafer shipments and higher average selling price per wafer. Revenue from the Energy division also improved to RM114.8 million during the quarter under review from RM91.7 million recorded in the preceding quarter. The increase was driven by higher lifting volumes and rise in average oil prices to USD97.2 per barrel, from USD74.7 per barrel earlier. Revenue from the IT division stood at RM55.5 million from RM55.3 million in 4Q FY2023, mainly due to the increase in trade transaction volume.
According to Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Executive Chairman of DNeX, the global economy is facing headwinds due to rising interest rates, a slower-than-expected economic recovery in China and escalating geopolitical tensions in the Middle East. DNeX will continue to leverage on its competitive strengths developed across its three core business segments to remain resilient amidst this challenging environment, he said.
“The global semiconductor industry exhibits long-term growth potential driven by continuous technological advancements. DNeX remains focused on enhancing its product offerings with emerging technologies that are expected to boost both revenue and profitability. Ongoing product testing and qualifications with global customers position DNeX to efficiently meet market demand when the industry rebounds,” he added.
In line with the strategy to diversify its O&G portfolio, Ping Petroleum Limited has expanded its O&G assets across UK and Malaysia with the addition of Fyne Field in Central North Sea, UK and the Abu Cluster at the East Coast of Peninsular Malaysia. This expansion results in a diversified portfolio encompassing three assets in the UK (Anasuria, Avalon and Fyne) and three assets in Malaysia (Meranti Cluster, A Cluster and Abu Cluster).
“We consider the recent extension of voluntary oil production cuts by OPEC+ as a positive development, as it will contribute to higher oil prices, strengthening our position as an upstream producer. Also, this is expected to benefit OGPC by driving increased demand for technical products and equipment,” said Tan Sri Syed Zainal Abidin Syed Mohamed Tahir.
“We are committed to becoming the technology partner of choice by developing innovative solutions that accelerate digital transformation to enhance efficiencies and lower operating cost for users. Our strategic plan involves expanding our service offerings by advancing our capabilities and seizing opportunities in new technology areas such as IoT, Big Data and analytics. This will put us in a strong position when tendering for large-scale IT and digitalisation projects from the public and private sectors, locally and abroad.
Towards this end, we are cultivating partnerships with key technology leaders and global companies with the right technical know-how and expansive business networks. In Malaysia, we have partnered with companies such as MIMOS Berhad, Accenture Solutions Sdn Bhd and Strateq Sdn Bhd to create joint digital and technology offerings. Globally, we have entered into collaborations with refutable organisations including Ajlan & Bros, one of the largest private sector conglomerates in the Middle East and key Chinese technology partners to bid for technology projects in the Middle East and North Africa region. Potential projects include smart city developments, digital id, e-government service offerings and system integration works,” he said.
He added that, “To further drive digitalisation within trade facilitation, we have launched TradeSwift DAGANGNET, an all-in-one trade facilitation SuperApp. Designed for its user-friendliness and convenience, this platform enables users to effortlessly handle, pay, and manage trade transactions from anywhere. This reinforces our reputation as a key player in digital trade solutions, and we will continue to roll-out new digital solutions that simplify trade processes, which leads to ease of doing business for the trading community.”
As announced on 17 August 2023, the financial year end of the Group has been changed from 30 June to 31 December. The next audited financial statements shall be for a period of 18 months from 1 July 2022 to 31 December 2023, and thereafter, the financial year end shall be 31 December for each subsequent year.
For the 15-month period ended 30 September 2023 (“15M FY2023”), the Group recorded total revenue of RM1.629 billion and a net loss of RM105.4 million. This was mainly due to one-off non-operational adjustments incurred during the year such as deferred tax liability expenses due to enactment of the Energy Profit Levy (“EPL”) by the UK Government, impairment of assets and reversal of deferred tax assets. After adjusting for these items, the Group’s “normalised” net profit stood at RM119.4 million in 15M FY2023.
DNeX maintains a healthy cash position, generating net cashflow from operating activities of RM330.0 million in 15M FY2023. As at 30 September 2023, the Group held a positive cash balance of RM691.9 million, exceeding total borrowings of RM294.3 million.