PETALING JAYA: Uzma Bhd
’s three newly secured coiled tubing service contracts from PETRONAS Carigali Sdn Bhd are estimated to have a combined value of about RM600mil, according to Phillip Capital Research.
Uzma, via its 97%-owned subsidiary Setegap Ventures Petroleum Sdn Bhd, has secured three letters of award (LOAs) for the provision of coiled tubing unit equipment and services in Sarawak and Sabah.
The scope of work covers well intervention, idle well reactivation and production enhancement for both conventional and high-pressure high-temperature wells, as well as completion works for development and workover wells.
“These repeat awards, following the expiry of previous contracts in November 2025, reinforce Uzma’s strong execution track record in well solutions and further strengthen its position within PETRONAS’ (Petroliam Nasional Bhd) upstream services ecosystem,” Philip Capital Research said.
While the contract value was not disclosed, the research house estimated the total value at about RM600mil over the five-year period, based on annual revenue contribution of RM120mil.
It noted that the contracts, which run from February 2026 to February 2031, reflect an expanded scope under one of the awards.
“This is above the historical RM100mil annual revenue, reflecting the additional scope under LOA 3, which we estimate could contribute an additional RM20mil annually.”
In terms of earnings impact, the research house said the contracts are expected to contribute modestly in the near term.
“Assuming four months of recognition in its financial year ending June 30, 2026 (FY26) and a 7% net profit margin, we estimate the contract to contribute about RM3mil in profit after tax,” it said, adding that this represents about 4% of its FY26 earning forecast.
Overall, Phillip Capital Research said the awards enhance Uzma’s medium-term earnings visibility, supported by sustained upstream activity.
However, the research house made no changes to its forecasts as the contracts were already factored into its assumptions.
Phillip Capital Research has maintained a “buy” call on the stock with an unchanged target price of RM1.10 a share, based on eight times price-to-earnings multiple (PER) on FY27 earnings.
“At current levels, Uzma is trading at about three times FY27 PER, which we view as undemanding given its strengthening earnings outlook, supported by new contract wins and leverage to upstream activity recovery,” the research house said.
