KUALA LUMPUR (Nov 26): UMW Holdings Bhd's net profit almost doubled to RM196.99 million for the third quarter ended Sept 30, 2014 (3QFY14), from RM101.45 million a year ago.

The group’s quarterly revenue however, grew barely 7% to RM3.7 billion, against RM3.4 billion in the previous corresponding period. Earnings per share swelled to 16.86 sen, from 8.68 sen previously.

In a filing with Bursa Malaysia today, the group said the improvement was contributed by both automotive, and oil and gas segments.

The group's pre-tax profit increased to RM430.3 million, from RM245.6 million recorded in the same period of 2013.

For the nine months ended Sept 30 (9MFY14), UMW's net profit grew marginal by 0.42% to RM574.5 million, or 49.17 sen per share, versus RM572.1 million or 48.97 sen per share in the previous corresponding period.  

Revenue meanwhile, expanded 9% to RM11.25 billion, against RM10.32 billion.

The improvement in net profit and revenue for the cumulative period, was due to the same reason as above.

Going forward, UMW said its automotive segment is expected to sustain its performance, despite the heated competition posted by other car manufacturers.

"As such, aggressive campaigns and promotions are expected to continue in the fourth quarter of 2014," it added.

Toyota vehicle sales for the quarter under review, increased by 19.3% against the previous corresponding period, mainly contributed by better sales of Vios and Altis.

On its equipment segment, it said the Myanmar government has uplifted the sanction on jade mining activities, effective Sept 1, 2014.  

"The resumption of mining activities in the resource rich Kachin State, will offer growth potential to the equipment segment. With the contract recently secured to supply Komatsu equipment in Myanmar, the segment is expected to perform better in the coming months," it added.

Commenting on its oil and gas segment, UMW said two new jack-up drilling rigs are to be delivered, one each, next month (December) and in September next year.  

"The segment is expected to continue to generate satisfactory financial performance, with additional new rigs in operation."

UMW noted higher revenue contribution, mainly from the drilling Services segment, resulted in the revenue improvement in the oil and gas segment. Overseas operations contributed about 64% of the segment’s revenue in the third quarter of 2014.

UMW said its manufacturing and engineering segment is expected to sustain its performance in the fourth quarter of 2014.

UMW's share price rose two sen at RM11.30, translating into a market capitalisation of RM13.2 billion.