DNeX posts positive Q1 earnings from consolidation of Ping Petroleum, SilTerra Malaysia

DNeX posts positive Q1 earnings from consolidation of Ping Petroleum, SilTerra Malaysia

Moving forward, DNeX is optimistic that SilTerra will continue to benefit from the increase in global demand for semiconductor chips due to the rising adoption of technologies in Industry 4.0, artificial intelligence and the internet of things.

KUALA LUMPUR: Dagang NeXchange Bhd (DNeX) registered a net profit of RM293.56 million in the first quarter (Q1) ended September 30, 2021, on the back of RM270.87 million revenue.

In a filing to Bursa Malaysia today, DNeX said there is no comparative for the quarter ended September 30, 2021, due to the change in the financial year-end from December 31 to June 30.

As a compared immediate preceding quarter, DNeX's revenue increased by RM224.97 million, mainly due to the impact from consolidation of Ping Petroleum and SilTerra Malaysia Sdn Bhd, which contributed RM67.27 million (24 per cent) and RM148.77 million (54 per cent) respectively, to the company's revenue.

DNeX's system integration and consultancy business reported a marginal increase in revenue by RM14.86 million to RM20.67 million from RM5.81 million.

The company's trade facilitation and e-services business remain stable with a slight reduction in revenue of RM0.92 million (3.8 per cent).

The segment's revenue stood at RM23.41 million in the current quarter compared to RM24.33 million in the immediate preceding quarter.

Moving forward, DNeX is optimistic that SilTerra will continue to benefit from the increase in global demand for semiconductor chips due to the rising adoption of technologies in Industry 4.0, artificial intelligence and the internet of things.

"Injection of new funds for capital expenditure and recent process improvements at SilTerra's manufacturing plant has led to an increase in production capacity and higher operating efficiency resulting in better cycle time, tool uptime gain and scrap reduction.

"To strengthen SilTerra's business sustainability, the group is optimising capacity mix by streamlining and focusing on strategic customers.

"SilTerra is also working towards securing more long-term agreements with the right customers in each market segment with the proper pricing strategy in the current tight market situation," it said.

Besides that, DNeX said the strong rise in Brent crude oil prices, which are now trading at levels above US$80 per barrel, will benefit Ping, which is involved in upstream oil and gas production.

"In line with improved oil prices, Ping is now exploring opportunities to monetise economically attractive reserves in the Anasuria Cluster, which has estimated proved and probable reserves of about 26.6 million barrels of oil equivalent.

"Ping has also acquired the remaining 50 per cent stake in greenfield asset, Avalon Oil Development, to expand further its portfolio of upstream assets in the North Sea, UK," it added.

DNeX said with the economic recovery underway and barring any unforeseen circumstances, the company is confident that the strategies implemented to grow and strengthen its core businesses will lead to a better performance in the financial year ending June 30, 2022.

https://www.nst.com.my/business/2021/11/748984/dnex-posts-positive-q1-earnings-consolidation-ping-petroleum-silterra