KUALA LUMPUR: PublicInvestment research is positive on Uzma Bhd
's unit securing a contract for hte provision of directional drilling services from Pertaminia Hulu Energi Offshore North WEst Java.
The contract award signifies the group's ability in securing new contracts in the region, said the research house in a Friday note.
"We keep our forecast unchanged nonetheless as we assume this contract is within our job replenishment target for the year," it said.
It maintained its outperform rating on Uzma with an unchanged target price of RM1.12.
It added that the group's earnings outlook remains intact with about RM1.2bil balance order book coupled with stable profit margins of above 30% at gross level.
The group's tenderbook stands at about RM3bil and its activities are expected to increase in 2H2019 with the stable industry outlook, said PublicInvest.
To recap, Uzma's sub-subsidiary PT Cougar Drilling Solutions Indonesia (PT.CDSI) was awarded the contract for two years starting from Feb 25, 2019 to Feb 25, 2021, with an option to extend upon approval by the government authority.
There is no firm value to the contract as work orders will be issued to PT CDSI from time to time.
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