Cyberjaya, 18 November 2019 – Dagang NeXchange Berhad (“DNeX”) has announced its results for the third quarter ended 30 September 2019 (“3Q FY2019”), and the nine months period ended 30 September 2019 (“9M FY2019”).
In 9M FY2019, DNeX’s revenue grew nine per cent to RM203.2 million from RM185.6 million a year ago, on the back of higher contribution from IT & e-Services division, which rose seven per cent to RM161.5 million, and Energy division, up 19 per cent to RM41.7 million. IT & e-Services continued to be the key cornerstone of the Group and accounted for 79 per cent of the Group’s total revenue in 9M FY2019.
The revenue growth in IT & e-Services was mainly driven by the submarine cable installation project, Makkah Route project, as well as higher contribution from the development and maintenance of the Integrated Government Finance & Management System (“iGFMAS”). Meanwhile, the increment in the Energy division’s revenue was mainly contributed by the Trading & Services businesses, which increased 17 per cent to RM40.2 million as compared with RM34.4 million in the preceding year-to-date (“9M FY2018”).
Profit After Tax (“PAT”) stood at RM35.2 million in 9M FY2019 against RM48.1 million in 9M FY2018, affected by one-off accounting adjustments made in the previous year for the iGFMAS project costs that were over provided in prior years.
Excluding this, both core divisions had delivered improvements in their earnings performance. IT & e-Services delivered profit before tax (“PBT”) increase of 31 per cent or RM5.5 million while PBT from the Energy division rose 25 per cent or RM3.7 million on the back of higher downstream oil and gas activities.
Commenting on the company’s financial results, Executive Deputy Chairman of DNeX Datuk Samsul Husin said, “The Group’s performance thus far has been positive despite external headwinds from multiple fronts. We will continue to take advantage of our expertise, track record and business components in the IT and eServices segment to drive growth.”
He said the company will continue to capture opportunities derived from digitalisation with the Dagang Net Digital Platform, which provides end-to-end innovative services that allow organisations connect and collaborate with governments, businesses and consumers leveraging on technologies such as blockchain, artificial intelligence, big data analytics and radio frequency identification.
“Meanwhile, we are pleased to note that the Energy division continued to register improvement in performance and increased involvement in the downstream oil and gas activities. We aim to sustain the momentum by aggressively pursuing for more projects in the downstream sector,” he said.
He added that the company will continue to pursue its cost optimisation programme aimed at operational efficiency and business profitability.
For 3Q FY2019, DNeX recorded a revenue of RM62.0 million against RM63.3 million in the previous year’s corresponding quarter (“3Q FY2018”). Profit after tax (“PAT”) grew 10 per cent to RM8.6 million as compared to RM7.9 million in 3Q FY2018. As at 30 September 2019, the Group’s net assets per share improved to 27 sen from 25 sen as at 31 December 2018.