SHAH ALAM, 25 February 2016–UMW Holdings Berhad’s revenue of RM4,160.9 million recorded in the quarter ended 31 December 2015 was 13.1% higher than the revenue recorded in the same quarter of 2014. The improved performance from the automotive segment by 31.8% contributed to the higher revenue.

The Group recorded a loss before taxation of RM334.3 million in the current quarter despite the higher revenue recorded. The loss before taxation was attributable to assets impairment in the Oil & Gas segment provided in the current quarter, as well as the weakening of ringgit against US dollar (“USD”).

Group’s results for the quarter by RM337.7 million. The weakening ringgit had also resulted in a higher cost of sales of more than RM300.0 million for the quarter.

The Automotive segment recorded a higher revenue by RM814.1 million in the fourth quarter of 2015 compared to the previous year’s corresponding quarter. The higher revenue was due to positive response towards aggressive year-end sales campaigns coupled with the anticipated vehicle price increase in 2016. Nevertheless, the segment registered a lower profit before taxation of RM247.9 million for the quarter against RM316.2 million in the same quarter of 2014. The segment was adversely affected by the depreciating ringgit against the USD.

The Equipment segment’s revenue and profit before taxation in the fourth quarter of 2015 was lower than the performance in the same period of 2014. Fourth quarter 2014 performance was boosted by higher demand of heavy equipment in Myanmar following the resumption of jade mining activities in September 2014. The demand was subsequently normalised in 2015.

The Oil & Gas segment’s revenue in the current quarter of RM131.0 million was 59.9% lower than the previous year’s corresponding quarter of RM326.2 million. Lower revenue was due to lower time charter rates and lower utilisation of some of the assets during the quarter. The segment recorded a loss before taxation of RM411.3 million for the fourth quarter, after taking into account asset and goodwill impairment amounting to RM337.7 million for the period.

The loss before taxation was also attributable to costs incurred during the non-operational period when assets were not fully contracted as a result of the sluggish oil and gas market. The segment recorded a loss before taxation of RM73.6 million before provisioning for asset and goodwill impairment.

The Manufacturing & Engineering segment recorded 4.8% higher revenue in the current quarter compared to the same quarter of 2014 due to higher demand for lubricants and absorbers. In line with the higher revenue, profit before taxation also improved over the corresponding quarter of 2014. Successful disposal of the loss-making automotive components companies in India in November 2015 had also attributed to the segment’s better results.

“2015 was a very challenging year for the UMW Group. Many negative external factors descending upon us at the same time, mainly the sluggish oil & gas market and the depreciating ringgit against USD, had adversely impacted the performance of the Group resulting in the significant drop in profitability. Despite that, we also had a major significant event last year. The UMW Group was awarded a 25+5 year contract by Rolls-Royce to manufacture and assemble fan cases for its Trent 1000 aero engines. We are positioning ourselves into the field of High Value Manufacturing. We believe that the fan case project will enable UMW to strengthen its engineering capabilities and establish a strong platform for delivering future value creation for the Group,” says Badrul Feisal bin Abdul Rahim, its President & Group CEO.

The Board declared an interim single-tier dividend of 20% or 10.0 sen per share of RM0.50 each, amounting to a net dividend payable of approximately RM116.8 million (2014 – 32% or 16.0 sen per share of RM0.50 each, amounting RM186.9 million) for the year ended 31st December 2015, to be paid on 23rd March 2016. The total single-tier dividend for the financial year ended 31st December 2015 would be 40% or 20.0 sen per share of RM0.50 each, amounting to a net dividend of approximately RM233.7 million (2014 – 82% or 41.0 sen per share of RM0.50 each, amounting to a net dividend of RM479.0 million).