UMW-OG sees 16% rise in 3Q net profit to RM66.1 mil

by **Cals** Tue 25 Nov 2014, 00:13

UMW-OG sees 16% rise in 3Q net profit to RM66.1 mil

KUALA LUMPUR (Nov 24): UMW Oil & Gas Corp Bhd (UMW-OG) saw its net profit rising 16% on-year to RM66.1 million in its third quarter ended Sept 30, 2014 (3QFY14), from RM57 million, while revenue increased 24% on-year to RM254.3 million from RM205.3 million.
Its earnings per share (EPS) for the quarter stood at 3.06 sen per share, compared to 3.68 sen per share in 3QFY13.
"Higher profit contributions from the drilling services segment as well as additional investment income from the others segment, accounted for the profit improvement in the third quarter of 2014," said UMW in a filing with the bourse today.
UMW's drilling services segment posted a 25% on-year increase in profit before tax (PBT) to RM72.8 million, backed by better margins from the higher utilisation of its UMW NAGA 3 jack-up rig.
Meanwhile, its oilfield services segment reported a 40% on-year drop in its PBT to RM1.2 million during the quarter, due to lower contributions from its operations in China.
For the year up to Sept 30 (9MFY14), net profit of UMW-OG stood 31% higher at RM180.1 million, compared to RM137.7 million in the year before, while revenue climbed 30% to RM688.7 million from RM530.6 million.
The group's EPS for 9MFY14, however, was lower at 8.33 sen per share, compared to 8.88 sen in the year before.
Going forward, the group expects its financial performance for the current financial year to be better than its financial performance in 2013.
For its drilling services segment, the group said UMW NAGA 6 was completed end-Sept this year, and that it had been mobilised to Vietnam in Oct to work on a drilling contract awarded by Petrovietnam Drilling and Well Services Corp.
"Our other offshore drilling rigs, NAGA1, UMW NAGA 2, UMW NAGA 3, UMW NAGA 4 and UMW NAGA 5 as well as hydraulic workover units, UMW GAIT 3 and UMW GAIT 6, are expected to be fully utilised in the fourth quarter of 2014," said UMW-OG.
Meanwhile, the group also expects to improve the performance of its oilfield services segment.
UMW-OG rose 6 sen to close the day at RM3.14, giving it a market capitalisation of RM6.79 billion.