DNeX has entered into a head of agreement (“HOA”) with Ping Petroleum Limited (“Ping”) for DNeX to make an offer through Ping to acquire the remaining equity interest in Ping not currently owned by DNeX. DNeX’s investment in Ping stood at RM216 million as at 31 December 2019. Since 2016, Ping has built a successful track record and balanced portfolio in the UK North Sea, including 50 per cent of the Anasuria Oil Cluster, consisting of an operated portfolio of producing oil fields as well as other working interest in  various assets within the North Sea, which are in development and exploration stage and have yet to commence production.

As at Ping’s last audited accounts for the financial year ended 30 June 2019, Ping recorded revenue of USD96 million or RM401 million and profit after tax of USD29 million or  RM121 million. As at 30 June 2019, Ping has no bank borrowings with cash and cash equivalent at USD51 million or RM213 million and total equity of USD162 million or RM676  million. (Exchange rate USD1.00 : RM4.1755)

Encik Mohd Azhar Mohd Yusof said the move to take full control of Ping will enable DNeX to benefit from a full consolidation of Ping’s earnings and future growth with its well- balanced portfolio of production, development and exploration assets. Ping is estimated to have proved and probable (“2P”) oil reserve of 25 million barrels equivalent.

Upon completion of the above proposal, Ping will be a wholly-owned subsidiary of DNeX and DNeX will be able to fully consolidate the revenue and earnings of Ping, which is  expected to enhance DNeX’s financial performance in the future.

“DNeX is strongly confident that the global oil price will remain favourable in the longer term despite the short term post Covid-19 recovery challenges supported by OPEC’s historic production cut and production declines in the United States” said Encik Mohd Azhar Mohd Yusof.

DNeX is a leading service provider in Malaysia’s trade facilitation and energy sector. Set up in 1970, their core businesses stem into a myriad of sectors that encompasses a family of specialised companies, each providing customised services, solutions and infrastructures, engineered and led by industry experts.

The company organise their businesses into two core offerings: IT & eServices and Energy.

KeyFacts Energy: Ping Petroleum UK country profile