SHAH ALAM, 26 May 2015–UMW Holdings Berhad recorded revenue of RM3,240.4 million for the first quarter ended 31st March 2015, RM343.0 million or 9.5% lower that the RM3,583.4 million recorded in the same period of 2014. The Group revenue was impacted by the lower performance of Automotive and Manufacturing & Engineering segments.
In line with the lower revenue, the Group generated lower profit before taxation of RM320.0 million against RM479.4 million in the previous year’s corresponding quarter. Consequently, the Group recorded net profit attributable to equity holders of the Company for the first quarter ended 31st March 2015 of RM165.2 million against RM235.5 million recorded in the previous year’s corresponding quarter.
The Automotive segment recorded revenue of RM2,005.6 million for the first quarter of 2015 compared to RM2,656.4 million registered in the previous corresponding period. Toyota core vehicle models faced stiff competition from the new model launches by other players in the market.
Consequently, the segment registered a lower profit before taxation of RM233.5 million for the quarter. The weakening of Ringgit Malaysia has also unfavourably affected the profit for the segment.
Equipment segment’s revenue of RM653.0 million for the first quarter of 2015 has outperformed its 2014 level of RM434.9 million by RM218.1 million or 50.1%. Both heavy and industrial equipment sub-segments contributed to the improved performance with an increase of 78.1% and 29.6% respectively. Locally, the improved revenue performance was attributable to higher demand for equipment, parts and services in anticipation of Goods and Services Tax implementation. For overseas operation, the resumption of the jade mining activities in Myanmar in September 2014 as well as tax incentive given by the authority on the purchase of equipment in Singapore contributed to the higher revenue.
In line with the improved revenue, profit before taxation for the Equipment Segment increased to RM99.3 million from RM39.1 million recorded in the previous corresponding quarter. The Oil & Gas segment’s revenue of RM312.5 million for the current quarter was 59.8% or RM116.9 million higher than the previous year’s corresponding period of RM195.6 million.
The improved revenue performance was attributable to the following –
Full contribution from UMW NAGA 5 and UMW NAGA 6 which commenced operations in May and October 2014, respectively; Improved operating efficiency by UMW NAGA 2 and UMW NAGA 3; and
Additional revenue from hydraulic workover GAIT 3 and GAIT 6. GAIT 6 was not operating in the first quarter of 2014. Profit before taxation of RM42.5 million recorded for the current quarter was lower compared to RM58.3 million reported in the previous year’s corresponding quarter. Lower contributions from the drilling business mainly attributed to discounts on time charter rates given to existing clients in view of the significant drop in oil price, accounted for the profit reduction in the first quarter.
The lower profit was also due to the termination of contract of UMW NAGA 7 with Frontier Oil Corporation (“FOC”). UMW NAGA 7 was ready for deployment in February 2015.
Manufacturing & Engineering segment recorded a lower revenue and profit before taxation for the current quarter of RM171.1 million and RM1.8 million, respectively. Lower contribution was attributed to lower sales by the auto component manufacturers especially on the 4 wheelers products. The segment’s lower performance was however mitigated by better contribution from the lubricant business.