KUALA LUMPUR (Feb 25): UMW Holdings Bhd swung into a net loss of RM286.04 million for the fourth quarter ended Dec 31, 2015 (4QFY15), from a net profit of RM77.47 million a year ago, dragged down by assets impairment in the oil and gas (O&G) segment and the weakening of the ringgit against the US dollar.

"The asset and goodwill impairment in the O&G segment had negatively impacted the group’s results for 4QFY15 by RM337.7 million, while the weakening ringgit had resulted in a higher cost of sales of more than RM300 million," said UMW in a statement today.

Revenue, however, rose 13.1% to RM4.16 billion in 4QFY15, from RM3.68 billion in 4QFY14, due to improved performance from the automotive segment by 31.8% year-on-year.

The group also proposed a second interim dividend of 10 sen per share, amounting to RM116.8 million, for FY15, payable on March 23. This brings total dividends for the year to 20 sen per share, totaling RM233.7 million.

For the full year (FY15), the group posted a net loss of RM38.93 million compared with a net profit of RM651.97 million in FY14.

Revenue slipped 3.4% to RM14.41 billion in FY15, from RM14.93 billion in FY14.

“2015 was a very challenging year for the UMW Group. Many negative external factors descending upon us at the same time, mainly the sluggish O&G market and the depreciating ringgit against the US dollar, had adversely impacted the performance of the group, resulting in the significant drop in profitability," said its president and group chief executive officer Badrul Feisal Abdul Rahim in a statement today.

"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," he added.

UMW shares rose 5 sen to close at RM6.95 today, for a market capitalisation of RM8.12 billion.