KUALA LUMPUR, MALAYSIA, 16 JUNE 2014 – UMW OIL & GAS CORPORATION BERHAD (“UMW-OG” or the “Company”) received full approval from its shareholders for all its resolutions during the Company’s Annual General Meeting (“AGM”), held today at the UMW Auditorium at the headquarters of its parent company, UMW Holdings Berhad (“UMW Holdings”).

The main resolutions put forward were to re-elect Tan Sri Asmat bin Kamaludin as Chairman and Non-Independent Non-Executive Director of UMW-OG, as well as the re-election of three other directors, Datuk Syed Hisham bin Syed Wazir as Non-Independent Non-Executive Director, Encik Rohaizad bin Darus, as Non-Independent Executive Director and President of UMW-OG and Puan Fina Norhizah binti Hj Baharu Zaman as Independent, Non-Executive Director, as well as to re-appoint Messrs. Ernst & Young as auditors of the Company. 

Speaking at the press conference following the AGM, Tan Sri Asmat bin Kamaludin, Chairman and Non-Independent, Non-Executive Director of UMW-OG stated, “The landscape of the Oil & Gas industry is very encouraging, both at home and abroad. With such initiatives as the Malaysian Government positioning the Oil & Gas Industry as a Key National Economic Area for its Economic Transformation Programme (“ETP”), the domestic market is looking very healthy and is expected to continue with high levels of activity. We are also seeing increased activity regionally, with non-traditional oil-producing nations such as Myanmar and the Philippines stepping up their activities in the industry. In addition, a number of smaller and marginal fields found previously are being developed, especially in Malaysia. Our fleet of premium jack-up drilling rigs is perfectly suited for such activities.” 

At listing, UMW-OG planned to grow its assets as part of its growth plans and have delivered by adding UMW NAGA 5 to their fleet, as well as placing orders for three more rigs, including UMW Naga 6, UMW NAGA 7 and UMW NAGA 8 which are scheduled for delivery in September 2014, December 2014 and September 2015, respectively. UMW-OG will be using these rigs to continue its regional and international expansion. UMW NAGA 5 is currently working in the Philippines while the Vietnam market is being serviced by UMW NAGA 2 and UMW NAGA 3. UMW-OG is also maintaining a number of rigs to service the Malaysian market including NAGA 1 and UMW NAGA 4.

Tan Sri Asmat continued, “We will continue to play a role in creating a more sustainable Malaysian and South-East Asian drilling Industry. To this end we have established the UMW-INSTEP Drilling Academy (“UIDA”) in collaboration with Institut Teknologi Petroleum PETRONAS (“INSTEP”) to provide training and development of skilled personnel for the drilling industry. We are happy to be keeping our listing promises of fleet and regional expansion and are optimistic about the coming year.”

At its latest results briefing, held on 20 May 2014, to announce financial performance for the first quarter of the financial year ending 31 December 2014 (“FY2014), UMW-OG showed a 6.1% increase in revenue, recording RM195.6 million in the first quarter of FY2014, an increase of RM11.2 million from the quarterly average of RM184.4 million in the financial year ended 31 December 2013 (“FY2013”), and a 12.8% increase in Profit Before Tax (“PBT”) announcing RM58.3 million in the first quarter of FY2014 compared to the FY2013 quarterly average of RM51.7 million. 

For the financial year ended 31 December 2013 (“FY2013”) UMW-OG achieved a revenue of RM738 million, up 2% from RM724 million in the financial year ended 31 December 2012 (“FY2012”), and a PBT of RM207 million, a significant increase of 180% compared to RM74 million in the previous year. Both the Drilling Services and Oilfield Services Divisions delivered improved earnings with the Drilling Division contributing major growth in profitability.