DNeX expects SilTerra, Ping Petroleum to drive FY22 earnings 

KUALA LUMPUR: Dagang Nexchange Bhd (DNeX) made a net profit of RM116mil in the three-month ended June 30, as higher oil prices boosted the value of energy reserves held by its subsidiaries.

The company. which recently changed its financial year to end of June, said its prospect for current year ending June 30, will be driven by investments in chipmaker SilTerra Malaysia Sdn Bhd and oil and gas exploration company Ping Petroleum Ltd.

"The consolidation of both companies’ financial performance will have a significant positive impact to the Group’s performance in the financial year ending June 30, 2022 (FY22)," DNeX said in a filing today.

The Group said it was optimistic that SilTerra will grow at a strong pace with higher average selling prices due to the current semiconductor chip shortage and increasing demand for semiconductor chips in a post-Covid 19 environment.

"In addition to injection of new funds for capital expenditure to enhance SilTerra's competitive edge, remove bottlenecks and improve plant utilisation rate and efficiency, SilTerra will also focus on higher capacity utilisation, operational efficiency and cost improvement initiatives and streamlining its product portfolios to achieve higher margins and better profitability," it said.

DNeX completed the purchase of a 60% stake in SilTerra from Khazanah Nasional Bhd in July.

"The Group is also working towards securing more long-term contracts that provide steady revenue contribution such as the recent approximately US$400mil multi-year contract from ChipOne Technology," it added.

Meanwhile, higher Brent crude oil prices at above US$70 a barrel was expected to benefit the group's energy business.

"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 also intends to optimise its current greenfield portfolio, such as Avalon, including acquiring the remaining 50% stake in Avalon not currently owned by Ping," DNeX said.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

DNeX , Ping Petroleum , SilTerra


Next In Business News

MIDA, MEDEF ink MoU on collaborative efforts
Car sales revved up in September as curbs lifted
German-based H&R to invest RM200mil in speciality plant in Perak
IOI Investment offers to purchase US$600m debt notes
Straits Energy Resources unit to acquire RM14.5mil oil tanker
RAM: Edra Solar’s debt service capacity to be strong
Moody's assigns first-time ratings to Hibiscus; outlook stable
Moody’s upbeat on IOI outlook, riding on earnings’ growth, higher CPO prices
ACO partners EV Connection to install electric vehicle fast-charging station
Gamuda unit acquires Binh Duong land for development project

Others Also Read