DNeX to focus on cost optimisation


DNeX group managing director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir

KUALA LUMPUR: Dagang Nexchange Bhd (DNeX) will focus on optimising costs while maximising business value to ensure long-term sustainability, according to group managing director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir.

“In view of the global economic uncertainties ahead, the Group will focus on optimising costs while maximising business value to ensure long-term sustainability.

“Furthermore, the strengthening of the US dollar is favourable to the group with more than 80% of the group’s revenue transacted in US dollar. Particularly at SilTerra Malaysia Sdn Bhd, we will continue to focus on investing in new emerging technologies that command higher average selling prices for long-term sustainability,” he said in a statement.

Syed Zainal said its energy division is expected to benefit from stabilising Brent crude oil prices over the near term on the back of Russian oil sanctions and production cuts by OPEC+.

“We are keen to unlock the remaining economic reserves through infill drilling and facility debottlenecking. We are confident that our Energy business, anchored by Ping Petroleum Limited, will continue to grow as a Malaysian-led company and expand and unlock the potential of other assets within the UK and Southeast Asia region,” he added.

In the first quarter ended Sept 30, DNeX’s net profit tumbled 85.8% to RM41.7mil, or earnings per share of 1.32 sen against RM293.6mil, or 9.81 sen in the same quarter last year.

“Included in 1Q22 PAT was a one-off negative goodwill of RM264.5mil from the acquisition of SilTerra. Excluding this, PAT for 1Q23 increased by 85%, and profit after tax and non-controlling interest improved by 44% year-on-year,” DNeX said.

Revenue, however, surged 55% to RM419.6mil from RM270.9mil a year prior, driven by higher contribution from the technology and energy businesses.

DNeX’s balance sheet continues to remain healthy. As at Sept 30, the group was in a net cash position with total cash of RM1.05bil exceeding total borrowings of RM322.6mil.

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