KUALA LUMPUR (Jan 11): Just two days ago, Uzma Bhd won three umbrella contracts from Petronas Carigali Sdn Bhd. Today, it announced another contract from Petronas Carigali to supply a 340K and 460K Hydraulic Workover Unit.

In a filing with Bursa Malaysia after market close, Uzma said the umbrella contract was awarded to its wholly-owned subsidiary Uzma Engineering Sdn Bhd (UESB). The tenure of contract is three years starting from Dec 22, 2017 till Dec 21, 2020, with an extension option of one year.

Uzma said the umbrella contract does not constitute a commitment for any specific work and the execution of the umbrella contract depends on work orders to be issued to UESB from time to time at Petronas Carigali’s discretion. Hence, there is no form value for the umbrella contact.

“The company will make the required announcement pursuant to the Bursa Malaysia Securities Bhd Main Market Listing Requirements as and when a material sum of work order is received under the umbrella contract,” said Uzma.

However, the company noted that the contract is expected to contribute positively to the company’s earnings and enhance the group’s net assets per share for the financial year ending June 30, 2018 (FY18) and onwards until the expiry of the umbrella contract.

Uzma’s share price crashed to a four-year low of RM1.28 last month. It rebounded recently in line with the improved sentiment on oil & gas counters on Bursa. The stock closed at RM1.50 today, down one sen, with 1.18 million shares traded. It has a market capitalisation of RM476.84 million.