KUALA LUMPUR: PublicInvest Research said it estimates the Uzma Bhd
umbrella project received from Petronas Carigali on July 2 to be worth about RM100mil and is expected to be finished in a year.
The research house said the figure was based on channel checks with several companies' announcements.
"As such, this contract will contribute significantly in the Group’s FY19 top line numbers," it said.
To recap, Uzma has been awarded an umbrella contract by Petronas Carigali for provision of Well Abandonment Integrated Services for Pulai-A, which will cover 22 firm wells.
PublicInvest said it is pleased with the announcement as it demonstrates the group's ability to replenish its orderbook consistently, backed by its strong position as a brownfield service provider.
"Our Outperform call on the Group is reaffirmed with expectation on its earnings outlook to remain intact – to be supported by its c.RM1.8bn balance order book in hand and improving profit margins. We maintain our TP of RM1.27 based on a 10x PE multiple over FY19F EPS of 12.7sen," it said.
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