DNeX posts RM160m 4Q’s net profit

The group also recorded positive growth for its revenue contributed by each segment the group operating in

by SHAFIQQUL ALIFF / pic TMR

DAGANG NeXchange Bhd (DNeX) posted RM160 million net profit for its fourth quarter ended June 30, 2022 (4Q22), while its 4Q’s revenue posted RM430 million contributed by each segment in the group.

In a filing to Bursa Malaysia, the group said its IT segment reported an increase in revenue by RM13.06 million to RM60.75 million in 4Q22 due to progress milestone revenue.

The group’s Trade Facilitation & eServices business revenue improved by 2% or RM0.46 million mainly due to progress milestone revenue in the current quarter and also supported by trade traffic volume recorded.

DNeX’s energy segment revenue increased to RM115.45 million compared to RM102.87 million in 3Q22, mainly due to higher average selling prices (ASPs) resulting from a significant rise in Brent crude oil prices which is US$115.01 (RM516.39) per barrels.

The technology business segment contributed a significantly higher revenue of RM254 million due to a better product mix and higher ASPs achieved.

The group said their energy segment will remain strong as the price of Brent crude oil prices are expected to remain elevated on the back of a tight supply outlook due to bans by the European Union on Russian oil exports.

DNeX said this will benefit Ping Petroleum Ltd, a low-cost upstream producer which has an average cost of production of below US$30 per barrel.

“Ping has received a letter of ‘no objection’ from the North Sea Transition Authority about the proposed development concept for the second oilfield asset, Avalon Oil Development in the Central North Sea, UK.

“We have also taken delivery of the Sevan Hummingbird Vessel floating, production, storage and offloading vessel, which has been renamed to Excalibur — a 60m-diameter facility that has a storage capacity of 270,000 barrels of oil and is capable of producing up to 30,000 barrels of oil per day,” DNex stated.

The group said the transformation efforts at SilTerra Malaysia Sdn Bhd have led to a strong turnaround in the group’s financial performance due to higher ASPs achieved and operational improvements recorded in terms of production output, quality control and manufacturing efficiency.

DNeX said SilTerra will continue to pursue manufacturing excellence and superior technology innovation as they enter the new financial year.

“The three long-term agreements secured with major clients will fulfill capacity utilisation to more than 70% while the expansion efforts to increase SilTerra’s annual production capacity by 10% are progressing well and are expected to be completed by the first half of 2023.

“As a result, more capacity will be allocated to new emerging technologies such as microelectromechanical systems and Silicon Photonics devices which command higher ASP. In addition, manufacturing costs are expected to reduce in line with economies of scale,” the group said.

The group added that they will continue to operate the National Single Window for trade facilitation until Aug 31, 2024.

“Our new trade facilitation related service offerings especially in the business-to-business segment locally and in international markets are gaining traction and are currently in the pilot implementation phase.

“We are focused on digital transformational services for public and private sector clients such as the development of cloud-based Enterprise Resource Planning applications as well as new applications in analytics, big data, artificial intelligence and robotics process automation,” DNeX added.