Hi guys,
Today is D-Day for Reckoning of US-CHINA TRADE WAR.
Many are selling in despair. So This Is The Best Time To Be Greedy When Others Are So Fearful
THAT'S IT
THE SECRET IS OUT. TIME TO BUY WHEN OTHERS ARE FEARFULLY SELLING
NOW OF 1.000 OVER STOCKS IN BURSA CALVIN HAS UNCOVERED ANOTHER GEM =
UZMA
UTTERLY
ZEALOUS
MASTERING
ALL
AND THESE ARE MY REASONS FOR BEING SANGUINE ON UZMA
1) AT 80 SEN WITH NTA OF RM1.53 UZMA IS SELLING AT A DEEP 48% DISCOUNT TO NAV.
THIS GIVES US A GOOD MARGIN OF SAFETY
RM60 MILLIONS ARE IN REAL ESTATE. THE REST CONSIST OF HWUs (Ha I thought only Velesto has HWUs), Sea Submersible & a Plethora of Oil & Gas Equipments Far more than Carimin or Penergy
2) THE OIL & GAS EQUIPMENT ASSETS OF UZMA ARE WELL OILED AND IN TOP CONDITION DUE TO BEING CONSTANTLY EMPLOYED THROUGH GOOD AND BAD TIMES (Unlike many left idle & rusty in lean tmes)
Penergy just reported another good revenue quarter of Rm110 Millions. BUT ITS BIG PROBLEM WAS DUE TO COSTS OF SALES WHICH ATE INTO ITS PROFITS
WHY THE COST OF SALES SO HIGH?
Let me illustrate
I Renovated more than 20 Houses in Booming Iskandar. The Most expensive one was the FIRST FEW
WHY SO?
BECAUSE TO RENOVATE A HOUSE THERE ARE COSTS
1) BUYING WHEEL BARROWS TO TRANSPORT BRICK & SAND
2) WATER JET TO CLEAN WALLS & ROOF TILES TO PREPARE FOR FRESH COAT OF PAINT
3) WELDING SETS & CUTTERS TO MAKE GRILLS
4) GRINDERS, POLISHERS & MANY OTHERS
5) MOBILE CEMENT MIXERS
IF THESE ARE NOT BEING OILED & IN CONSTANT USE THEY WILL RUST OR GET SPOILED
THIS IS WHY COSTS OF SALES (OR COSTS OF WORK) CAN EAT INTO PROFIT FOR ANY JOB.
WHILE PENERGY HAS FACED LEAN TIMES TILL LATELY
UZMA HAS BEEN GETTING JOB AFTER JOB (SO ITS COSTS OF SALES SHOULD BE MANAGEABLE)
See
PROSPECTS AND PROGRESS TO ACHIEVE FORECAST FOR NEXT FINANCIAL YEAR Barring any unforeseen circumstances, the Directors remain optimistic with the Group’s prospects for the remaining period to the end of financial year and next financial year, based on the positive developments of the Company specific in PTD 2018 as follows
(i) On 1 April 2014, the Company announced that a contractor Group that includes its wholly owned subsidiary, Uzma Energy Venture (Sarawak) Sdn. Bhd. and EQ Petroleum Developments Malaysia Sdn. Bhd. (“Contractor Group”), had on 27 March 2014 signed a Small Field Risk Service Contract (“SFRSC”) with Petroliam Nasional Berhad to carry out the development and production of petroleum from the Tanjung Baram Fields.
(ii) As announced on 10 July 2015, UESB was awarded by PETRONAS Carigali Sdn Bhd (“PCSB”) with a contract for Leasing, Operation and Maintenance of the D18 Water Injection Facility for PCSB. The contract value is estimated at RM350 million to RM400 million. The duration of the contract is for 5 years leasing period effective from 31 March 2016.
(iii) As announced on 6 February 2017, UESB was awarded by PETRONAS Carigali Sdn Bhd with an Umbrella Contract for the Provision of Electric Wireline Logging (EWL). The contract will run for a duration of 3 years, commencing from 1 December 2016 to 30 December 2019, with two extension options of 1 year each for Cased Hole Logging Services across the Pan Malaysia area. Upon issuance of specific work order, the Company expects the contract to contribute positively to its future earnings.
(iv) As announced on 28 February 2017, Uzma Engineering Sdn. Bhd. (“UESB”) was awarded by Murphy with a contract for the Provision of Hydraulic Workover Unit and services. The contract will run for a duration of 2 years with an extension option of one (1) year. Upon issuance of specific work order, the Company expects the contract to contribute positively to its future earnings.
(v) As announced on 22 March 2017, UESB was awarded by PETRONAS Carigali Sdn Bhd with a contract for the Provision of Fishing Equipment and Services and services. The contract will run for a duration of 2 years with an extension option of one (1) year. Upon issuance of specific work order, the Company expects the contract to contribute positively to its future earnings.
(vi) As announced on 9 January 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd three (3) umbrella contracts for the provision of electrical submersible pump (“ESP”) and services for PCSB as follows:- (a) Supply of Joineted Tubing ESP and the Deployments; (b) Supply of Coiled Tubing ESP and the Deployment; and (c) Surveillance, Monitoring and Maintenance of ESP. The tenure of the contract is three years from 20 November 2017 to 19 November 2020 with first extension option of one (1) year. Upon issuance of specific work order, the Group expects the contract to contribute positively to its future earnings.
(vii) As announced on 17 January 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd for the provision of Hydraulic Workover Unit (“HWU”) – “Ghazi 461” from 28 December 2017 until completion of three (3) firm well with extension option of a further six (6) wells. Upon issuance of specific work order, the Group expects the contract to contribute positively to its future earnings.
(viii) As announced on 1 March 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd for an umbrella contract for the Provision of 150K, 225K and 460K Drilling of Hydraulic Workover Unit (HWU). The tenure of the Umbrella Contract is three (3) years from 6 February 2018 to 5 February 2021 with an extension option period of one (1) year. Upon issuance of specific work order, the Group expects the contract to contribute positively to its future earnings.
(ix) As announced on 27 April 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd for an umbrella contract for the Provision of Well Abandonment Integrated Services. The tenure of the Umbrella Contract is two (2) years from 29 March 2018 to 29 March 2020 with an extension option period of one (1) year. Upon issuance of specific work order, the Group expects the contract to contribute positively to its future earnings.
(x) As announced on 25 July 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd for an umbrella contract for the Provision of Drilling Fluids and Associated Services. The tenure of the Umbrella Contract is five (5) years from 30 May 2018 to 30 May 2023. Upon issuance of specific work order, the Group expects the contract to contribute positively to its future earnings. (xi) As announced on 7 August 2018 and 8 August 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd a work order for the Provision of Well Abandonment Integrated Services for Pulai-A (“the Work Order”). The tenure of the Work Order is from 2 July 2018 until the completion of 22 firm wells which is estimated to be within the next 12 months. The Group expects the Work Order to contribute positively to its future earnings
. (xii) As announced on 29 January 2019 and 31 January 2019, Uzma completed the proposed acquisition in accordance with the terms and conditions of the share sale agreement to acquire additional 15% equity interest in SVP. The acquisition is which resulting SVP becoming a subsidiary to Uzma’s Group and expected to contribute positively to the Group’s future earnings.
3. UZMA GOING TO SEE GREAT REVENUE AND HIGHER PROFITS IN COMING QUARTERS OF YEAR 2019
Yesterday Jaks up due to 5 sen profit & Teo Seng gone up even higher due to 7 sen profit
NOW WILL UZMA REPORT BETTER AND BETTER PROFITS FOR YEAR 2019 COMING QUARTERS
YESSS!
TAKE A LOOK AT THESE JOB AWARDS
(x) As announced on 25 July 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd for an umbrella contract for the Provision of Drilling Fluids and Associated Services. The tenure of the Umbrella Contract is five (5) years from 30 May 2018 to 30 May 2023. Upon issuance of specific work order, the Group expects the contract to contribute positively to its future earnings.
(xi) As announced on 7 August 2018 and 8 August 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd a work order for the Provision of Well Abandonment Integrated Services for Pulai-A (“the Work Order”). The tenure of the Work Order is from 2 July 2018 until the completion of 22 firm wells which is estimated to be within the next 12 months. The Group expects the Work Order to contribute positively to its future earnings
UZMA WAS NOT INCLUDED IN THE FIRST 5 OGSE JOBS GIVEN TO CARIMIN, DAYANG, PENERGY, DELEUM & SAPNRG
BUT UZMA WAS FINALLY SELECTED FOR THE 2ND OGSE GROUP OF 12 ON JULY 2018 BY PETRONAS WHILE BOTH CARIMIN & DAYANG WERE DROPPED (PENERGY STILL GOT 2 OGSE AWARD)
SO WE WILL SEE UPTURN IN GOOD RESULTS FOR UZMA ( UZMA ALSO INTO DRILLING FLUID TO COMPETE AGAINST SCOMIES)
ANOTHER VERY BIG BIG JOB AWARDS ARE THESE
READ AGAIN
(xi) As announced on 7 August 2018 and 8 August 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd a work order for the Provision of Well Abandonment Integrated Services for Pulai-A (“the Work Order”). The tenure of the Work Order is from 2 July 2018 until the completion of 22 firm wells which is estimated to be within the next 12 months. The Group expects the Work Order to contribute positively to its future earnings
UZMA SECURED A WELL ABANDONMENT JOB ON 2ND JULY 2018 FOR 22 OIL WELLS WHICH ARE TO BE COMPLETED BY 2ND AUGUST 2019 (12 MONTHS SCHEDULE)
HA! THIS IS A ONE YEAR JOB ENDING SOON IN LESS THAN 2 MONTHS' TIME
AND THERE ARE A TOTAL OF 22 OIL WELLS
DID YOU READ CORRECTLY?
TWENTY TWO OIL WELLS!!!
READ AGAIN?
TWENTY & TWO OIL WELLS!!!
THAT IS A LOT OF WORK TO BE DONE ON THE HIGH SEAs
THAT MEANS LOTS AND LOTS OF REVENUE & PROFIT
22 WELLS MEAN 22 JOBS IN ONE!!! 22 JOB AWARDS?
YESSS!
4) UZMA GOES FOR HIGH MARGIN JOB AWARDS ONLY ACCORDING TO MANAGEMENT
Leaving Manpower Jobs which only give 3% Profit UZMA IS GUNNING FOR AT LEAST 35% GROSS PROFIT
SO ARE THESE OIL WELL DECOMMISSIONING PROFITABLE?
LET"S SEE
TECHNOLOGY Field abandonment costs vary widely worldwide
Typically, wells will be plugged and abandoned, topsides will either be
taken to shore or recycled, and substructures can be totally or
partially removed, or left in place.
Abandoning offshore fields has four distinct stages:1
-
Develop, assess, and select options and create a detailed planning process that includes engineering and safety preparedness.
-
Cease oil or gas production and safely plug and abandon wells.
-
Remove all or part of the offshore structure (in most cases).
- Dispose of or recycle removed equipment.
Estimates vary widely, but decommissioning the 6,500 platforms may cost between $29 and $40 billion. The U.K. and Norway areas, alone, are estimated to represent more than 50% of this cost.
HOW MUCH PER WELL?
USD446,153 (USD2.9 Billions divide by 6,500 Wells)In Ringgit term
446,153 x 4.20 = RM1873842.6
FOR 22 WELLS 1,873,842 x 22 = 41,224,524
THIS JOB REVENUE IS RM41.2 MILLIONS
AT 35% GROSS PROFIT = 14.42 millions
JUST THIS SINGLE JOB SHOULD TRANSLATE TO A NICE PROFIT OF 4.48 SEN IN PROFIT (NOT COUNTING OTHERS YET)
WITH THESE 3 IN VIEW
1) PETRONAS RAPID NEEDS 54.7 MILLION BARRELS OF CRUDE OIL PER YEAR
2) PH GOVT NEEDS REVENUE FROM PETRONAS FOR DEVELOPMENT EXPENSE (PETRONAS GAVE EXTRA RM30 BILLIONS LAST YEAR)
3) PETRONAS INCREASED CAPEX BY RM30 BILLIONS FOR UPSTREAM JOBS DUE TO HIGH CRUDE NOW AT USD70 PER BARREL
OIL AND GAS COUNTERS WILL CONTINUE TO DO VERY WELL
CALVIN THINKS ALL OIL AND GAS COUNTERS SHOULD PERFORM WELL
THIS TIME OF PRICE WEAKNESS PRESENTS US A WONDERFUL OPPORTUNITY TO BUY CHEAP
AND I THINK UZMA STANDS OUT IN TERMS OF VALUE, GROWTH WITH HIGH MARGIN OF SAFETY
AT 80 SEN NOW CALVIN HAS A MODEST TARGET PRICE FOR UZMA AT RM1.60 IN ONE YEAR
BEST REGARDS
Calvin Tan Research
Singapore
Please buy or sell after doing your own due diligence
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/205824.jsp
