Taking about undervalued oil and gas company since oil inventory getting less? There were a lot of companies can be part of your investment-grade under the oil and gas sector. We choose a company stable company with a lot of project in hand so that we can forecast its profit easily and correctly. Of course, this must come with low gearing company.
What is the project in the hand of UZMA has now?
This is taken from their quarterly report, based on the positive developments of the Company specific in YTD 2020 as follows:
(1) 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 October 2016.
(2) 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.
(3) 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.
(4) 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.
(5) 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.
(6) 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.
(7) 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.
(8) 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.
(9) 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.
(10) As announced on 14 March 2019, PT Cougar Drilling Solution Indonesia (“PTCDSI”), 90.25% fellow subsidiary of Uzma had been awarded a contract for the Provision of Directional Drilling Services for PT Pertamina Hulu Energi Onshore West Java (“PHE-ONWJ”). The tenure of the contract is two (2) years from 25 February 2019 to 25 February 2021 with an extension option subject to the approval of SKK MIGAS, an institution established by the Indonesia government to manage upstream oil and gas business activities. The execution of contract is depending on work orders to be issued to PTCDSI from time to time at the discretion of PHEONWJ. Hence, any delay in issuing work orders will lead to delay in revenue recognition. The Group expects the contract to contribute positively to its future earnings by taken into the consideration of risk associated with the contract.
(11) As announced on 19 March 2019 and 20 March 2019, MMSVS Group Holdings Co., Ltd (“MMSVS”), a wholly owned subsidiary of the Group had been awarded a contract for the Provision of Onshore Hydraulic Workover Services (340K) for PTTEP International Limited, PTTEP Siam Limited and PTTEP SP Limited. The tenure of the contract is three (3) years from 1 March 2019 to 30 June 2022 with a maximum extension option of one (1) year. The Group expects the contract to contribute positively to its future earnings by taken into the consideration of execution risk associated with the contract.
Since the oil price crash in mid-2014, the Oil and Gas (“O&G”) industry has been on a slow path to recovery. The cyclical nature of crude oil prices was evident by the market price movements. The Group remains optimistic given the encouraging development activities outlook despite the trade tensions and oil price volatility.
With the ongoing contracts won by the Group, as mentioned above, we maintain our focus on growing our integrated well solution segment and expanding our channels to regional market, especially in Thailand, Indonesia, Brunei and Philippines; strengthening our service proposition for other segments and building order book for our new energy segment. We remain confident that our commitment on the execution of our strategic plans will continue to steer our Group for a sustainable growth.
This good that the company is transparent with us about their revenue growth in the future.
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All the information is available online and I compile for readers reference, this is not a buy call or sell call. Good night.
End of Part 1
https://klse.i3investor.com/blogs/UZMA/2020-05-07-story-h1506941083.jsp
