KUALA LUMPUR: Share rose in Uzma Bhd in early trade on Wednesday as it won three umbrella contracts from Petronas Carigali Sdn Bhd.
Shares in the oil and gas counter rose eight sen, or 5.52 % to RM1.53 in response. It is among the top gainers so far today.
Uzma has been awarded three umbrella contracts by Petronas Carigali for the provision of
electrical submersible pump (ESP) and services to the latter.
Uzma said the services include the supply of jointed tubing ESP and coiled tubing ESP and their respective deployments, as well as surveillance, monitoring and maintenance of ESP.
The tenure for each of the umbrella contract is three years - from Nov 20 last year to Nov 19, 2020 - with a first extension option of one year.
PublicInvest Research said the new contract was “undoubtedly positive developments” for the Uzma despite no specific works being called as yet, or contract quantum revealed.
“This nevertheless solidifies its growth prospects, and reaffirms our ‘outperform’ call on the stock.
“Our target price is unchanged at RM2.07 based on an 11x multiple to FY19F EPS of 18.8 sen,” it said.
The research house said Uzma’s performance was expected to continue on an uptrend, with the uplift in oil prices above circa.US$60 per barrel levels likely to see oil majors accelerating their capex spending.
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