Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 22): Main Market-listed Dagang Nexchange Bhd's (DNeX) net profit came in 87% lower at RM11.93 million for the second financial quarter ended June 30, 2017 (2QFY17) compared with RM89.5 million a year earlier, largely because last year's earnings had booked in a pre-acquisition gain of excess fair value of RM85.3 million for its Ping Petroleum Ltd buy.

If the previous one-off gain was excluded, DNeX told Bursa Malaysia that its profit before tax (PBT) would have climbed twofold to RM13.3 million compared to RM6.2 million a year ago.

"The increase in group's PBT was contributed by growth in the group's B2B and B2G business, new recurring income from operation and maintenance of the VEP & RC system and share in operational net profit from 30% associate company, Ping," it said.

VEP refers to vehicle entry permit and RC stands for road charges. DNeX is contracted by the government to maintain and operate both systems.

Meanwhile, the group's quarterly revenue grew 4% year-on-year to RM49.11 million from RM47.42 million, on the back of the consolidation of OGPC Sdn Bhd's results, recurring income from the operation and maintenance of the VEP & RC system, and oilfield drilling services to Petronas.

Earnings per share dropped to 0.68 sen against 11.54 sen in 2QFY16.

The technology infrastructure services provider expects to deliver positive results for the year 2017 barring any unforeseen circumstances.

For the first half of FY17 (1HFY17), DNeX's net profit fell 72% to RM27 million from RM94.87 million. Net profit was affected by the volatility of crude oil price and margin compression in the oil and gas industry even though revenue clocked in 25% higher at RM92.93 million against RM74.31 million a year ago.

The group attributed the increase in 1HFY17 revenue mainly to the consolidation of OGPC's result, new recurring income from operation and maintenance of the VEP & RC system, continued growth in the group business-to-business (B2B) and business-to-government (B2G) business and oilfield drilling services.

Commenting on its prospects, DNeX said the group's information technology business is continuing to firm up its e-services by broadening its product range in the B2B segment to complement the group's position in delivering B2G services.

DNeX's share price surged to a five-year record high of 64 sen on May 5. The stock retreated to 53 sen today, with 44 million shares crossing hands. At today's closing, its market capitalisation stood at RM920 million. Year to date, the stock has gained about 106%.

 

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