DNeX posted a net profit of RM116.7 mil in 6Q20/21

By TMR / Pic by TMR GRAPHIC

Dagang NeXchange Bhd (DNeX) posted a net profit of RM116.73 mil for the sixth quarter of 18-month financial period ended 30 June 2021 (6Q FY2020/2021) mainly attributed to a fair value of oil reserves and goodwill from the acquisition of Ping Petroleum Limited.

While revenue for the period stood at RM45.9 mil, the company stated in a filing to Bursa Malaysia today.

There are no comparative figures quarter-on-quarter due to the change in the financial year end from 31 December to 30 June.

DNeX’s IT & eServices operations remained its main revenue contributor, amounting to RM30.14 million or 65.7% of total revenue in 6Q FY2020/2021. 

The remaining revenue was contributed from the Energy segment, accounting for 34.3 per cent or RM15.76 million in 6Q FY2020/2021.

For the cumulative 18 months period ended 30 June 2021,DNeX registered a revenue of RM330.50 million and net profit of RM119.98 million respectively.

“We embarked on strategic investments in SilTerra Malaysia Sdn Bhd (SilTerra) and Ping, which puts us in a strong position to capitalise on the robust semiconductor industry and ride on the recovery cycle of the oil and gas (O&G) industry,” said Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX.

He added the consolidation of SilTerra and Ping’s financial performance will significantly impact the group’s performance positively in the current financial year ending 30 June 2022 (FY2022). 

“With the recent acquisition completion of both companies’, we expect to see their positive contribution from 1Q2022 onwards. The Group is optimistic that SilTerra will grow at a strong pace with higher average selling prices (ASP), due to the current semiconductor chip shortage and increasing demand for semiconductor chips in a post Covid-19 environment. 

Furthermore, Ping, an upstream O&G player, will continue to benefit from crude oil prices that are currently trading at levels above USD70 per barrel,” he said.

DNeX and its partner Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (Limited Partnership) will continue to inject funding for capital expenditure to enhance SilTerra’s competitive edge. 

The Group is also working towards securing more long-term contracts that provide steady revenue contributions such as the recently clinched USD400 million multi-year contract from ChipOne Technology.

In the group’s energy business, Ping is expected to yield better operating performance in tandem with improved oil prices.

“DNeX now exploring opportunities to unlock its untapped potential and maximise economic value from its asset portfolio by rejuvenating existing wells to monetise economically attractive reserves in the Anasuria Cluster, which has estimated proved and probable (2P) reserves of about 26.6 million barrels of oil equivalent,” said the company.