Dagang NeXchange Berhad (DNeX) has continued to record a strong set of financial results for the first quarter ended 31 March 2017 (1Q 2017), anchored on its compelling results last year.
In 1Q 2017, the Group has tripled its net profit to RM15.0 million from RM4.7 million in the corresponding quarter last year (1Q 2016) while revenue grew by 63 per cent to RM43.8 million as compared to RM26.9 million reported in 1Q 2016.
The IT and e-Services segment reported a profit before tax (PBT) of RM14.1 million, which was mainly driven by Trade Facilitation and new recurring income from the operations of the Vehicle Entry Permit & Road Charges (VEP & RC) System, contribution from the new eWork Permit System and continued growth in the Group’s business-to-business (B2B) and business-to-consumer (B2C) businesses.
The Energy segment contributed PBT of RM3.8 million where this quarter included the consolidation of the OGPC Group’s earnings as well as the share of result of associate Ping Petroleum Limited (Ping).
“After announcing a compelling set of results for the financial year ended 31 December 2016 (FY 2016), we are excited to record continued improvements in our financial performance this year,” said Encik Zainal Abidin Jalil, Group Managing Director of DNeX.
This is attributed to the successful strategic transformation of DNeX to a company with two core businesses namely IT and e-Services as well as Energy, he said.
“We are determined to continue our relentless effort in sustaining our value creation by innovating and growing. Our focus is to strengthen our core services in IT and e-Services offerings by broadening our product range in the B2B and B2C segment to complement the 2 Group’s already strong position in delivering B2G services, especially in trade facilitation” he said.
“We expect to perform well in tandem with the improving national economic growth and crude oil price outlook along with the new revenue streams from the VEP & RC System project, eWork Permit as well as directional drilling services. Our financial performance continues to be largely supported by stability of our IT and e-Services segment along with continuous growth of our Energy business. Our over-arching objective is to execute a strategy of asset-light, know-how heavy in building our business” he added.
DNeX’s balance sheet continues to remain strong as the Group continues to be in a net cash position with a cash balance of RM63.2 million and no borrowings.