CYBERJAYA – Malaysian IT and energy sector service provider Dagang NeXchange Berhad (DNeX) has registered a higher profit (after tax and non-controlling interest) of RM15.1 million in the fourth quarter (Q4) of 2020 as compared to a loss of RM3.7 million the year before.
The group recorded a revenue of RM63.3 million in the Q4 ended December 30, 2020, as compared to RM87.3 million in the previous year’s corresponding period.
This brings the total revenue for the 12-month period ended December 31, 2020, to RM239.5 million, a reduction from RM290.5 million in 2019 due to lower revenue contribution from the IT segment.
The overall year-to-date trade traffic volume dropped by 2.5%, affected by economic slowdown due to the Covid-19 pandemic.
The decrease was offset by higher revenue contribution from the energy segment, which increased 22.7% year-on-year to RM73.8 million from RM60.1 million, driven by better performance in the trading and services unit.
DNeX group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said: “Moving forward, DNeX is heading towards greater growth as we embark on strategic investments that will strengthen our market presence in our core business segments of trade facilitation, system integration and consultancy, and energy.
“We are well positioned as a digital partner to businesses and government agencies towards facilitating improvements and efficiency in their processes.
“We will continue to pursue opportunities in digitalisation, including the recently announced MyDigital initiative, which is aimed at accelerating digital transformation in the public and private sectors in the country.”
DNeX revenue from the IT segment stood at RM46.2 million in Q4 2020 from RM68.9 million the previous year, on the back of lower progress billing from completed projects and the absence of contribution from a one-off submarine cable laying and maintenance contract completed in 2019.
The trade facilitation and e-commerce business recovered but with marginally lower revenue.
This division has shown a quarter-to-quarter increase in trade transaction volume of 8.6%, with an increase in revenue of RM1 million.
The energy segment revenue was at RM17.1 million in Q4 2020, a slight decrease from RM18.5 million the previous year, mainly impacted by lower progress billings and the imposition of the second movement control order that has led to a slowdown in project implementation.
The IT division remained the anchor revenue contributor to the group, representing 73% of the group’s Q4 revenue while the remaining 27% was from the energy division.
There was a reversal of non-cash impairment loss on intangible assets totalling RM13.5 million during the quarter.
The group has so far raised gross proceeds totalling RM93.9 million from the issuance and private placement of 397.6 million new DNeX shares.
Syed Zainal said that with the strong recovery of oil prices to levels above US$60 per barrel, the group’s proposed acquisition of an additional 60% stake in Ping Petroleum Ltd would augur positively for them.
“Furthermore, acceptance of a bid by the consortium, led by DNeX, for the proposed sale of SilTerra Malaysia Sdn Bhd, marks a significant milestone for the group in view of the strong demand for semiconductor chips globally,” he said.
The group, he added, is also upbeat on the growth prospects of its telecommunication business as the demand for certified vessels has been on the rise due to the advancement of telecommunications systems, which require powerful and effective transmission lines.
DNeX, through a consortium formed between business unit PT DNeX Telco Indonesia and PT Samudera Mbiantu Sesami, has recently signed a Consortium Agreement with PT Infrastruktur Telekomunikasi Indonesia for the deployment, management, maintenance, repair, and other value-added work for the Maintenance Support Sistem Komunikasi Kabel Laut within and outside Indonesia. – The Vibes, February 25, 2021
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