Update UMWOG’s order book at RM1.7 billion, plans capex of RM2b for this year

by **Cals** Tue 17 Jun 2014, 01:18

Update UMWOG’s order book at RM1.7 billion, plans capex of RM2b for this year

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Monday, 16 June 2014 16:28

SHAH ALAM (June 16): UMW Oil and Gas Corporation Bhd 's order book currently stands at RM1.7 billion, and the company plans to add rigs as part of a RM2 billion capital expenditure outlay for this year.

UMWOG President Rohaizad Darus said this at a press conference after the company’s first annual general (AGM) meeting following its IPO in November, 2013.

“Our latest orderbook is firm at RM 1.7 billion,” he said, underscoring his optimism over the oil & gas (O&G) industry outlook.

“The outlook of the oil and gas industry is very bullish and we foresee this trend to go on for the next three to four years,” he said.

“Our expansion plans are focused on this outlook because regional oil companies are aggressively looking for additional reserves in the region,” Rohaizad said.

Queried on the company’s capital expenditure(capex), Rohaizad said it would be RM2 billion for this year, and the company would be adding more rigs as part of its existing growth plan.

“For this year, we’ve an allocation of RM 2 billion as part of the IPO proceeds from last year. Moving forward, we’ll continue to study the market. The number of rigs added will depend on market demand,” said Rohaizad.

The agm approved the reelection of Tan Sri Asmat bin Kamaludin as chairman, and the reelection of three other directors.

Commenting on the AGM, Asmat told reporters that the AGM was “very successful”

“All the resolutions at the meeting were passed and we felt that the meeting was a good one,” he said.

For the financial year ended 31 December 2013, UMWOG achieved a revenue of RM738 million, up 2% from RM724 million in the financial year ended 31 December 2012.

Profit before tax rose 180% to RM207 million from RM74 million in the previous year. Both drilling services and oilfield services divisions delivered improved earnings with the drilling division contributing major growth in profitability.