Wah Seong Corporation Berhad Annual Report 2019

174 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 43 SEGMENTAL ANALYSIS For management purposes, the Group is organised into business units based on their products and services. The Group’s operating segments comprise: (a) Oil & gas division: Pipe coating, pipe manufacturing for the oil and gas industry, building and operating offshore/onshore field development facilities and the provision of highly specialised equipment and services to the power generation, oleochemical and petrochemical industries. (b) Renewable energy division: Supplier and manufacturer of specialised equipment for biomass power plants; such as industrial fans, boilers and turbines that run primarily on biomass fuels. (c) Industrial trading & services division: Trading and distribution of building materials and the manufacturing and trading of industrial pipes for the construction industry. (d) Others: All other units within the Group that do not constitute a separately reportable segment. Management monitors the operating results of its divisions separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on revenue and profitability measures as shown in the table below. Transactions between segments were entered into in the normal course of business and were established on agreed terms. The effects of such inter-segmental transactions are eliminated on consolidation. The assets are allocated based on the operations of the respective segments. The amounts provided to the Group Chief Executive Officer with respect to total assets are measured in a manner consistent with the disclosure of segment assets below. Oil & Gas Renewable Energy Industrial Trading & Services Others Total RM’000 RM’000 RM’000 RM’000 RM’000 RESULTS Financial year ended 31 December 2019 Revenue 1,489,366 399,550 426,123 203,364 2,518,403 Less: Inter segment revenue (3,085) - - (402) (3,487) External revenue 1,486,281 399,550 426,123 202,962 2,514,916 Segment profits/(losses) 15,619 23,962 (2,133) 9,693 47,141 Share of results of associates 27,105 - 56 (5) 27,156 Share of results of joint ventures (31,790) 1,565 - (702) (30,927) 10,934 25,527 (2,077) 8,986 43,370 Unallocated expenses relating to financing activities (19,880) Unallocated corporate expenses (17,928) Profit before tax 5,562