CYBERJAYA: Dagang NeXchange Berhad (DNeX) has made a strong start in the new financial year, posting a net profit of RM14.5 million for the first quarter ending on 31 March 2024 (1Q FY2024).
In 1Q FY2024, DNeX achieved a revenue of RM309.8 million. The Technology segment led the way with RM138.0 million, accounting for 45% of the total revenue. The Energy business followed, contributing RM105.9 million or 34%, while the Information Technology (IT) segment added RM65.9 million, representing 21% of the revenue.
The company saw a 9% quarter-on-quarter (QoQ) increase in revenue, rising from RM283.7 million in the previous quarter (6Q FY2023) to RM309.8 million in 1Q FY2024. This growth was primarily driven by higher contributions from the Energy and IT segments.
Due to a change in the financial year-end from 30 June to 31 December, there are no comparative figures for the quarter ending 31 March 2024.
Breaking down the revenue contributions:
- Technology Division: Despite a slight decline from RM145.4 million in the previous quarter to RM138.0 million, the division faced lower average selling prices due to product mix, although wafer shipments increased.
- Energy Division: Revenue grew by 9% QoQ, from RM97.2 million to RM105.9 million, fueled by higher lifting volumes and favorable oil prices, which increased from USD81.9 per barrel to USD87.0 per barrel.
- IT Segment: Marking a substantial 61% growth in revenue, the segment surged from RM41.1 million to RM65.9 million, primarily due to the completion of progressive work on certain projects.
In the Energy segment, DNeX’s immediate priority is the reactivation of the Abu Cluster, located offshore Terengganu, Malaysia, with first oil production targeted for early 2025. The anticipated production volume is 2,500 barrels per day. Ping, a subsidiary of DNeX, operates a geographically diverse late-life oil and gas portfolio, including assets in the UK (Anasuria, Avalon, and Fyne) and Malaysia (Meranti Cluster, A Cluster, and Abu Cluster).
In the IT division, DNeX is actively bidding for strategic and large-scale public and private sector IT projects in both domestic and international markets. The company has been operating the National Single Window for Trade Facilitation since 2009 and is optimistic about securing an extension when the current contract is due for renewal in August 2024. “Leveraging our proven capabilities, we look forward to playing a strategic role in achieving the Malaysian Government’s aspirations to lead Malaysia’s digital economy forward,” said Tan Sri Syed Zainal Abidin Syed Mohamed Tahir Jamalullail.
As of 31 March 2024, DNeX is in a healthy net cash position, with a total cash balance of RM630.6 million, exceeding total borrowings of RM252.4 million.
Tan Sri Syed Zainal Abidin Syed Mohamed Tahir Jamalullail, Executive Chairman of DNeX, emphasised the company’s commitment to diversifying its revenue streams to drive growth. This strategy involves leveraging DNeX’s strengths across its three main business segments, expanding into adjacent profitable sectors, and forming strategic partnerships to enhance long-term financial performance.
“In our Technology business, we anticipate a rebound in the global semiconductor market later in 2024, supported by a recovery in consumer, automotive, and industrial markets. To capitalise on this recovery, we are intensifying efforts to attract high-quality customers and enhance our Silicon Photonic technology. Additionally, we aim to fast-track the qualification process for products in emerging technology sectors, accelerating their market entry,” he stated.
DNeX’s strategic focus and robust performance across its business segments position the company well for continued growth and financial success in the upcoming quarters.
