Posted by offshore > 2018-02-27 18:47 | Report Abuse

Oil price has recovered from the bottom but not the day rate of offshore drilling. It will take sometime for the market the absorb the rig overcapacity before the day rate starts to climb. If you already have bought in, just wait or pass it down to your children to continue to wait. If you are thinking to buy because price is already cheap, well, price can remain low for a long period of time. Until there is reversal of impairment, there is no turnaround yet.

Posted by offshore > 2018-02-27 19:02 | Report Abuse

There is reason why impairment is needed. Year 2017 should be profitable year because all rigs have contract. If it is losing even if there is contract, obviously the book value of the rigs are overvalued, resulting to high depreciation that cannot be covered by the current day rate. I always suspect the management is understating the impairment because they need to rollover the financing and can't afford to show a very negative result to the banks.

Posted by faizkl > 2018-02-27 19:03 | Report Abuse

The worst Qtr report of UMWOG has been released..

Posted by WallStBull > 2018-02-27 19:05 | Report Abuse

Ok listen guys... the QTR results that came out was very much to analysts expectation! Read this about umwog by Billy Toh. So dont speak and follow blindly. Speak with FACTS.

http://www.theedgemarkets.com/article/top-10-stock-picks-2018

UMW Oil & Gas Corp Bhd (UMW O&G) could turn around in 2018 as its earnings recovery is on sight. The country’s biggest jack-up rig operator has returned to the black in the third financial quarter ended Sept 30, 2017 (3QFY17), with a net profit of RM3.4 million, or 0.16 sen per share, compared to a net loss of RM135.4 million, or 6.26 sen per share. UMW O&G has seen its fleet utilisation improve from a dismal average of 21% in the 1QFY16 to 68% and 90% in 2QFY17 and 3QFY17 respectively.

According to TA Securities analyst Abel Goon, UMW O&G’s management expects the utilisation rate to be greater than 90% in 4QFY17, while FY18 will realise at least 80% utilisation rate.

“For UMW O&G, one of the key risks is the idling costs incurred. With the utilisation rate now back to about 90% level, the company should see a turnaround in 2018. Although the rates remain at a fairly low level, the company would turn profitable if the management could maintain the utilisation rate,” Goon told The Edge Financial Daily over a phone call.

He added that UMW O&G should be able to secure more drilling contracts from Petroliam Nasional Bhd’s (Petronas) prioritising local content. Based on UMW O&G management’s feedback, Goon pointed that Petronas requires at least 12 rigs in Malaysia for FY18. UMW O&G currently has seven premium jack-up rigs generating 99% of the group’s revenue.

Further, it is on a stronger financial footing after the completion of RM1.8 billion rights issue.

UMW O&G has guided that a one-time write-off of unamortised transaction costs plus potential asset impairment loss arising from a year-end review in 4QFY17 could weigh on its annual earnings for the financial year ended Dec 31, 2017 (FY17).

Goon reckons the market has priced in a large impairment in 4QFY17, which is why the share price remains at a subdued level. At the current price, UMW O&G is trading at about 0.5 times its book value, one standard deviation below its historical average, despite the expected turnaround in its operations, alleviations of short-term liquidity risks and upwards trajectory seen in oil prices.

TA Securities has set a target price of 51 sen a share, indicating a potential upside of 67.2% from its closing price of 30.1 sen last Friday.

Nonetheless, there remains downside risks for O&G players, especially if the crude oil price sees another sharp decline, which could lead to low utilisation rate. The higher-than-expected finance costs, despite the reduction in borrowings, could also hurt UMW O&G, which has a relatively high gearing level. — By Billy Toh

Posted by ankahill > 2018-02-27 19:30 | Report Abuse

Tomorrow die die!!!!!

Posted by mfbs > 2018-02-27 19:31 | Report Abuse

bleeding....

Posted by ankahill > 2018-02-27 19:42 | Report Abuse

Back to 28 sen..

Posted by somersby > 2018-02-27 19:54 | Report Abuse

tomorow buy, when panic sell

Posted by somersby > 2018-02-27 20:01 | Report Abuse

oil up, umwog also big loss

Posted by kkchoo79 > 2018-02-27 20:05 | Report Abuse

The long term and short term borrowing reduce a lot compared to year 2016. Good or not?

Posted by stock_hunt > 2018-02-27 20:56 | Report Abuse

this titanic is turning around..this results is showing sign of recovery..if oil price continue to uptrend or at this level will be good

Posted by Behtahan > 2018-02-27 20:58 | Report Abuse

Finishhhhhhhh,,,,waiting pn17

Posted by IronShirt > 2018-02-27 21:00 | Report Abuse

Umwog cash flow (679m up from 333m ) Increase by RM300million injected by PNB last month

Posted by IronShirt > 2018-02-27 21:03 | Report Abuse

Down 29,227% QoQ really knocked your pants off, just accounting side. Not Cash. RM679m is real
money

Posted by RickyHo > 2018-02-27 21:05 | Report Abuse

Kali ini mati lah

Posted by slayerno8 > 2018-02-27 21:10 | Report Abuse

Qr already out..bad sign..

Posted by NateM > 2018-02-27 21:19 | Report Abuse

Those who said pn17 and bad one, should read the report properly...

Posted by mrrite > 2018-02-27 21:25 | Report Abuse

this report not bad...

Posted by IronShirt > 2018-02-27 21:28 | Report Abuse

i don't think they understand accounting in the first place. Anyway we got to sacrifice some "virgin"
first.

Posted by Sigmund1118 > 2018-02-27 22:02 | Report Abuse

impairment lost is Re-adjustment of equipment n property value in the book. Should be No direct impact on cash flow

Posted by Sigmund1118 > 2018-02-27 22:04 | Report Abuse

Actually revenue is start in uptrend .

Posted by Sigmund1118 > 2018-02-27 22:06 | Report Abuse

Preparing more bullet to buy when other panic sell.

Posted by optimus9199 > 2018-02-27 22:31 | Report Abuse

After reading thoroughly the result of UMWOG, in conclusion this 4th Q results showed significant improvement in revenue and gross profit vs previous year and preceeeding Q results. If you take away the impairment losses, there is actually a profit of RM 13.5mil vs a loss of RM 135.5mil in the 2016 Q4. In addition, there was increase in the drilling segment with 95% utilization rate currently vs 90% ( preceeding Q) vs 19% (last year 4Q) due to stabilizing crude oil prices of $60. The heavy impairment losses of RM 980mil this Q is already been expected and predicted by other research houses eg TA enterprise . According to UMWOG, the additional impairment was crucial this Q of RM 982mil vs RM 780mil. As at 31st December 2017, the Group impaired its assets by RM982.1 million mainly due to revision
in basis and assumptions including charter rates, utilisation rates and discount factors, to take into
account the latest developments in the drilling industry. The revision has resulted in lower projected
discounted net cash inflows from the Group’s asset.
As at 31st December 2017, the United States Dollar had weakened against the Ringgit Malaysia by
about 9.5% compared with the exchange rate as at 31st December 2016. This had affected assets
and liabilities upon translation of the Group’s assets and liabilities denominated in USD to RM, the
presentation currency of the Company. The net impact to equity as at 31st December 2017 was a
loss of RM232.4 million. As a summary, i think UMWOG is growing and able to utilize its jack rig to 95% currently and able to generate cash of RM 693mil vs RM 330mil previous year. It has also able to par down its borrowings to RM 1.85bil from RM 3.772 bil. Operating cash flow is positive at RM 83mil vs RM 55mil. UMWOG is affected by volatility in global crude oil prices and forex rates, which will affect the translaton of the group's liabilities and assets which is denominated in USD to MYR. For myself,after considering the above growth potentials, i will continue to keep UMWOG, but will not buy more of this shares. I will not invest alot of money in this stock, but keep my investment in it to the minimum. For sure, there are larger room for UMWOG share price to grow and limited down sides due to 1) increasing global crude oil prices 2) political play for GE 14 3) Big funds EPF KWAP as major share holders will help cushion the price from falling further. 4) More umbrella projects to be awarded by Petronas

Posted by wantocin > 2018-02-27 22:39 | Report Abuse

sell

Posted by Pmaster > 2018-02-27 22:52 | Report Abuse

Wow really shock big lose ! terrible ! Unexpected , how far the price can drop tomorow ?

Posted by wudmec > 2018-02-27 22:54 | Report Abuse

After reading thoroughly the result of UMWOG, in conclusion this 4th Q results showed significant improvement in revenue and gross profit vs previous year and preceeeding Q results. If you take away the impairment losses, there is actually a profit of RM 13.5mil vs a loss of RM 135.5mil in the 2016 Q4.

Posted by wudmec > 2018-02-27 22:54 | Report Abuse

tomorrow will up..

Posted by saubergoh > 2018-02-27 23:00 | Report Abuse

im not sure hows tomoro but for sure i will hold it n monitor 1st as im still a newbie n monitoring and learning what will go on...

Posted by Max2838 > 2018-02-27 23:06 | Report Abuse

on UMWOG, the impairment loss on the balance sheet will create a 'deferred tax-asset'...
When a company incurs a tax loss, it can then carry forward the tax loss to reduce taxable income in future ?

Posted by anson938 > 2018-02-27 23:16 | Report Abuse

Up..Up...Up...

Posted by Pmaster > 2018-02-27 23:17 | Report Abuse

Wudmec , tomorow will up ? U really dreaming , tomorow price will be 0.15-0.20.

Posted by Pmaster > 2018-02-27 23:17 | Report Abuse

Wudmec , tomorow will up ? U really dreaming , tomorow price will be 0.15-0.20.

Posted by Pmaster > 2018-02-27 23:19 | Report Abuse

The price will slowly drop to 0.10 or below 0.10 in few monrhs later.

Posted by Max2838 > 2018-02-27 23:21 | Report Abuse

On the balance sheet, long-term assets are reduced by the impairments. A deferred-tax asset is created. Stockholders' equity is reduced as a result of the impairment loss included in the income statement.

Future net income will be higher as there will be lower asset value, and thus a smaller depreciation expense.
Future ROA and ROE will increase.

Posted by apolloang > 2018-02-27 23:21 | Report Abuse

4 consolidation into 1 or 10 into 1 in future if results no improve.everyyear lost almost 1 bil,can tahan berapa tahun?

Posted by wudmec > 2018-02-27 23:22 | Report Abuse

up to u..im buying for long term..not buy today sell tomorrow..im investor not trader...will keep until brent oil change direction to downtrend..

Posted by joetay > 2018-02-27 23:22 | Report Abuse

umwog is really a joke, bro.

from almost 5 and now is only worth 32 sens in 1 yr.

really is champion.

Posted by Max2838 > 2018-02-27 23:23 | Report Abuse

This impairment is a paper loss only in the books but has no actual impact on the Company's cash balance or cash flow. Cash balance in UMWOG has in fact improves. Cash flow balance is very important as an on-going concern.

Posted by Edwardong53 > 2018-02-27 23:23 | Report Abuse

Thanks optimus9199 for your feedback

Posted by Pmaster > 2018-02-27 23:26 | Report Abuse

Apolloang , if next year lose another 500miliion , the nap will be negative. No future., dun hold for long terms.

Posted by joetay > 2018-02-27 23:28 | Report Abuse

umwog is the parkson of ong

Posted by Pmaster > 2018-02-27 23:30 | Report Abuse

I think pnb will pay 0.10 to privatise this counter in future.

Posted by joetay > 2018-02-27 23:33 | Report Abuse

i wont be surprise if pnb do so.

but i didnt read the financials yet, so cannot really comment.

Posted by Pmaster > 2018-02-27 23:40 | Report Abuse

I really want to know how much can drop tomorow.i guess 30-40% for the first day.

Posted by joetay > 2018-02-27 23:44 | Report Abuse

lol.......

only left 32 sens, drop anymore, have to delist.

Posted by apolloang > 2018-02-27 23:45 | Report Abuse

likely govt bodies support at 30cts.....but actually no worth that much....hehe

Posted by Pmaster > 2018-02-27 23:54 | Report Abuse

I can say no one can accept the last qtr lose 980m , really cheating counter like sapnrg.

Posted by wudmec > 2018-02-28 00:27 | Report Abuse

Max2838

This impairment is a paper loss only in the books but has no actual impact on the Company's cash balance or cash flow. Cash balance in UMWOG has in fact improves. Cash flow balance is very important as an on-going concern.

Posted by Pmaster > 2018-02-28 00:35 | Report Abuse

Wudmec , u just c the price movement tomorow morning. I hope will as what u say the price will up.haha

Posted by Pmaster > 2018-02-28 00:36 | Report Abuse

Wudmec , u just c the price movement tomorow morning. I hope will as what u say the price will up.haha