KUALA LUMPUR (May 25): Uzma Bhd saw its net profit drop 4.4% to RM8.05 million or 3.01 sen a share for its first quarter ended March 31, 2015 (1QFY15) from RM8.43 million or 6.38 sen a share a year earlier, as higher gross profit was not enough to offset higher administrative and operating expenses and higher finance costs.

The group's revenue for 1QFY15, however, grew 52% to RM148.53 million in 1QFY15 from RM97.72 million in 1QFY14, contributed by long term contracts. Gross profit increased by RM13.8 million or 62.1% year-on-year in 1QFY15.

In a filing with Bursa Malaysia today, Uzma said barring unforeseen circumstances, it remain optimistic with the group’s prospects for the remaining period to the end of the financial year and next financial year.

This optimism is based on the group’s developments such as the award of a contract for the provision of cased hole electric-line logging perforation and other services by Petronas Carigali Sdn Bhd which is valued at RM59 million.

There is also its two-year contract for the provision of through tubing downhole tools and services worth RM50 million that is also from Petronas Carigali, among other contracts it has secured.

Uzma (fundamental: 1.30; valuation: 1.50) shares today fell 1.68% to close at RM2.34, with a market capitalisation of RM627.6 million.

(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.)