DNeX bags supply contract from PetDag worth RM11.8m

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KUALA LUMPUR (July 17): Dagang NeXchange Bhd (DNeX) has won a contract worth RM11.8 million from Petronas Dagangan Bhd (PetDag) for the supply of automatic tank gauging (ATG) for Petronas stations. 

In a statement today, DNeX said the contract, awarded to its wholly-owned subsidiary OGPC Sdn Bhd, involves undertaking the supply, installation, testing, commissioning and maintenance of ATG and its accessories for some 200 Petronas stations nationwide.

The contract, which commenced on July 12, is for a period of two years, with an option to extend for another two years. 

DNeX said works on the project also include the supply, installation, testing, commissioning and maintenance of the Wetstock Management System (WMS) connected to ATG and its accessories, as well as relevant hardware, software on cloud-based platforms and cybersecurity systems. 

DNeX explained that the ATG and its accompanying hardware and software system provides automatic measurement of fuel storage tanks, thus enabling more accurate and improved, real time reading. 

“The project augurs well with efforts to boost book order, and further expand on business growth of OGPC, including contracting work in downstream sector,” DNeX executive deputy chairman Datuk Samsul Husin said in the statement. 

According to Samsul, OGPC, which is a supplier, service provider and contractor for oil and gas, petrochemical, power, palm oil and general industries, has contributed a new stream of revenue for DNeX since the group acquired the company in 2016.

“We are continuously growing this business, namely to get more jobs, which OGPC has been delivering this year,” he said.

Shares of DNeX closed down 1.5 sen or 5.00% at 28.5 sen today, bringing a market capitalisation of RM501.04 million.