KUALA LUMPUR (May 22): UMW Holdings Bhd saw its net profit for the first quarter ended March 31, 2018 (1QFY18) surge more than three times to RM74.08 million from RM20.16 million, due to the group's exit from its oil and gas (O&G) businesses.

In a filing to Bursa Malaysia today, UMW Holdings reported the results of the O&G businesses, both listed (UMW O&G Corp Bhd) and unlisted, as discontinued operations.

The group posted a loss before taxation from discontinued operations of RM23.7 million, which was substantially lower than the loss of RM124.5 million registered in the same period of 2017.

Recall that UMW O&G had been demerged from the group and the results of the company are no longer included as part of the group's performance effective July 1, 2017.

Operations in the unlisted O&G segment have been scaled down while the management of UMW Holdings has been actively executing the divestment strategy.

Meanwhile, profit from its continuing operations including its automotive and equipment businesses had improved by 45% and 14%, respectively.

Revenue for 1QFY18 fell 10.4% to RM2.42 billion compared to RM2.7 billion a year ago. Despite reporting an improved profit margin thanks to a stronger ringgit against the US dollar, the group's auto sector saw a decline in revenue, as sales volume declined.

The company has declared a single-tier dividend of 5 sen per share for the financial year ending Dec 31, 2018, to be paid on June 21 to shareholders whose name appears in the record of depositors at the close of business on June 6.

In a statement, UMW Holdings president and group chief executive officer Badrul Feisal Abdul Rahim said that following the exit from the listed O&G segment, the group is now well-positioned with improved earnings visibility and growth.

"Moving forward, we are confident of the long-term prospect of our three core businesses as demonstrated by our ongoing investments in automotive, equipment and manufacturing and engineering businesses.

"Our growth strategy will be underpinned by continued expansion in these three core segments to deliver value to our shareholders," he said.

UMW shares closed up 3 sen or 0.46% today to RM6.60, for a market capitalisation of RM7.78 billion.