Uzma gets five-year umbrella contract from Petronas Carigali

This article first appeared in The Edge Financial Daily, on July 26, 2018.
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KUALA LUMPUR: A wholly-owned subsidiary of Uzma Bhd, Uzma Engineering Sdn Bhd (UESB), has secured a five-year umbrella contract from Petronas Carigali Sdn Bhd for the provision of drilling fluids and associated services for petroleum arrangement contractors (PACs).

In a filing with Bursa Malaysia, Uzma said there is no firm value for the umbrella contract, as it depends on work orders to be issued to it from time to time at the discretion of PACs.

“The tenure of the umbrella contract is five years from the date of the letter of award dated May 30, 2018.

“The umbrella contract is conditional upon UESB executing a formal contract with the respective PACs. It (the umbrella contract) does not constitute a commitment to any specific work.”

The umbrella contract is expected to contribute positively to group earnings and to enhance its net assets per share for the financial year ending June 30, 2019, and onwards if work orders are issued to UESB.

Uzma yesterday closed five sen or 4.76% higher at RM1.10, with a market capitalisation of RM348.83 million. Over the past 12 months, the counter has fallen 28.57%.