KUALA LUMPUR (Feb 18): Uzma Bhd shares rose 6 sen or 2.65% to RM2.32 on the back of its subsidiary clinching a RM59 million contract from Petronas Carigali Sdn Bhd.

At 9.45am, a total of 516,100 shares changed hands.

Yesterday, Uzma (fundamental:1.7; valuation: 0.7) said in a filing with Bursa Malaysia that its wholly-owned subsidiary Uzma Engineering Sdn Bhd (Uzma Engineering) had bagged a RM59 million contract to well services for Petronas Carigali.

Petronas Carigali had awarded Uzma Engineering the contract to provide cased hole electric-line logging perforation and other services for two years.

The contract was effective from Jan 28, 2015, with the option to extend for an addition of one year period, until Jan 27, 2018.

Uzma had earlier last month revealed that it had secured a contract for the provision of through tubing downside tools and services from Petroliam Nasional Bhd (Petronas) and the contract period will last for two years effective from Jan 1 to Dec 31, 2016 with an extension option of one year.

Research firm BIMB Securities Sdn Bhd noted that inclusive of this contract win, Uzma has secured an aggregated contract value of approximately RM110 million over the past two months into 2015 despite unfavourable crude oil prices.

“We are positive with this contract win as it further boosts our confidence in Uzma capability to continue securing contracts despite the unfavourable crude price condition,” the note read.

“We have revised both our financial year 2015 and financial year 2016 (FY15 and FY16) earnings forecast higher by 9% to RM57.6 million and RM62.3 million respectively by assuming higher order book replenishment into the year, enhancing our confidence in Uzma.”

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)