Uzma secures two contracts worth RM136mil

PETALING JAYA: Oil and gas services provider Uzma Bhd has secured two contracts with a cumulative value of RM136mil.

In a filing with Bursa Malaysia, Uzma has received a letter of award for the provision of integrated plug and abandonment services for Sarawak Shell Bhd, which will be carried out at two Shell-operated platforms involving five wells.

The value of the contract is approximately RM100mil, with works expected to commence this April and be completed by November 2020.

In a separate announcement, Uzma said it has been awarded an umbrella contract for the provision of well testing and tubing conveyed perforations from Petronas Carigali Sdn Bhd.

Uzma will perform the lightweight well testing services, which will be effective from Jan 15,2020 and expiring on March 31,2021 or until the completion of the scope of works.

The value of the work order is RM36mil. Uzma said that both contracts from Shell and Petronas Carigali are expected to contribute positively towards the earnings and net assets per share of the group for the financial year ending June 30,2020 (FY20) and onwards, until the expiry of both contracts.

For the second quarter of FY20, Uzma registered a net profit of RM6.8mil.

This brought its net profit for the first half of the financial year to RM16.19mil, as compared to RM15.42mil during the corresponding period last year, mainly contributed by a significantly lower unrealised foreign-exchange gain.

The group also saw an improved gross profit margin from 35.4% to 37.9% during the first half of FY20.

Going forward, Uzma remains optimistic of its ability to remain competitive to further grow its order book in existing and new markets.

The group noted that its margins have been consistently on the uptrend due to improved efficiency and focus on higher-margin businesses.

“With the group’s ongoing contracts and recent contract wins, we maintain our focus to grow our upstream services segment, largely integrated well solution services, as the main revenue contributor.

“Additionally, we are pursuing opportunities to expand our channels to regional markets, especially in Thailand, Indonesia, Brunei and the Philippines. We will also strengthen our service proposition for other service segments and build the order book for our new renewable energy segment, ” said Uzma.

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