Dnex said it posted a net profit of RM9.12mil for the third quarter.
KUALA LUMPUR: Dagang Nexchange Bhd
(Dnex)’s near-term priority is the reactivation of the brown field, Abu Cluster, targeting first oil production in the second half of 2025, at an anticipated rate of 2,500 barrels per day.
This is following a further revision to the UK Energy Profits Levy policy, which have led Dnex via its oil and gas subsidiary, Ping Petroleum Ltd , to prioritise its Malaysian assets in the near term.
The company said it is actively pursuing opportunities to acquire additional producing assets to enhance production levels and improve its overall performance.
In the United Kingdom, Ping Petroleum continues to operate the producing Anasuria field, while planning for the development of greenfield assets, Fyne, Avalon, Pilot, Glenn, and Hutton.
In a statement yesterday, Dnex said it posted a net profit of RM9.12mil in the third quarter ended Sept 30, 2024 (3Q24) on the back of RM263.03mil revenue.
For the nine months just ended, it registered a net profit of RM28.58mil while revenue came in at RM870.96mil.
There was no comparative financial information as Dnex changed its financial year end to Dec 31 from June 30.
Its technology segment, which was the largest revenue contributor accounting for some 61% of its total revenue, saw a 3% increase to RM161.5mil in 3Q24 from RM156.2mil a year ago driven by higher average selling prices on the product mix.
Its energy segment is the second largest revenue contributor with 20%, while the information technology segment accounted for the remaining RM49.1mil or 19%.
The energy segment reported a softer revenue in 3Q24 of RM52.4mil as compared to RM92mil in 2Q24 due to lower average oil prices and reduced lifting volume resulting from a planned well maintenance shutdown for maintenance purposes.
For its information technology segment, the subsea telco as well as technology consulting and system integration businesses recorded increased contributions due to completion of cable installation and repair work services, and progress milestone of the ongoing projects, respectively
However, this was offset by lower revenue from trade facilitation in tandem with completion and progressive work done on certain projects.
Dnex executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir Jamalullail said, “Our focus remains on building a sustainable future by leveraging our expertise, expanding our capabilities, and embracing new technologies. We are committed to growth locally and internationally and are confident that our strategies will deliver long-term value for all stakeholders.”
It has a strong net cash position with a total cash balance of RM476.3mil as at Sept 30, 2024 while its total borrowings stood at RM74.7mil.
