KUALA LUMPUR (Feb 23): UMW Oil & Gas Corp Bhd (UMW-OG) saw its net profit for the fourth quarter ended Dec 31, 2014 (4QFY14) rise 38.5% to RM71.26 million from RM51.46 million a year ago, on higher profit contributions from both its drilling services and oilfield services segments, as well as additional investment income.
In a filing with Bursa Malaysia today, UMW-OG (fundamental: 1.45; valuation: 0.3) said revenue for 4QFY14 rose 58.2% to RM327.66 million from RM207.13 million in 4QFY13 due to improved contributions from both drilling and oilfield services segments, and overseas operations which contributed 65.6% of the group’s 4QFY14 revenue.
Earnings per share (EPS) for 4QFY14 was higher at 3.30 sen compared with 3.11 sen a year ago.
For the full year ended Dec 31, 2014 (FY14), UMW-OG reported a 32.9% increase in net profit to RM251.31 million from RM189.15 million in FY13, mainly due to significant profit contributions from the drilling services segment.
Revenue for FY14 also rose 37.8% to RM1.02 billion from RM737.75 million in FY13 due to improved revenue contributions from both the drilling services and oilfield services segments. Its overseas operations accounted for 53.6% of FY14 revenue.
EPS for FY14 was at 11.62 sen, up from 11.45 sen in FY13.
On its outlook, UMW-OG said the drilling services segment is expected to face challenges in securing favourable day rates for its drilling rigs in 2015,with the recent decline in oil prices.
“However, the cyclicality of the oil and gas industry has been taken into account when the company executes its expansion plans that include penetrating into new markets over wider geographical areas and adding a number of new clients,” said UMW-OG.
UMW-OG's share price closed down 3 sen or 1.06% today to RM2.79, with a market capitalisation of RM6.03 billion.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)