Uzma bags RM200m contract extension from Petronas Carigali

Uzma bags RM200m contract extension from Petronas Carigali
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KUALA LUMPUR (Dec 15): Uzma Bhd, via its subsidiary Setegap Ventures Petroleum Sdn Bhd (SVP), has secured a two-year contract extension worth RM200 million from Petronas Carigali Sdn Bhd for the provision of coiled tubing and services (CTU).

The contract was originally awarded to the company in 2015. The extension period is from Dec 1 this year until Nov 30, 2022, according to Uzma's stock exchange filing today.

The contract is expected to contribute positively towards the company’s earnings and net assets per share for the financial year ending June 30, 2021 and onwards, until the contract’s expiry, said Uzma.

“Uzma Group is proud of this contract extension which we believe shows the confidence in our capabilities within integrated well services,” said its group chief executive officer Datuk Kamarul Redzuan in a separate statement today.

“We believe the award is timely, as it will enable Uzma Group to continue to support the Malaysian Oil & Gas sector at a time when improving global oil prices and sentiment will lead to higher production demand, especially from existing brownfields,” he added.

Uzma’s shares closed 1.5 sen or 2.52% lower at 58 sen today, valuing the company at RM185.62 million. Some 3.34 million shares were traded. The counter has risen as much as 75.8% from this year’s low of 33 sen. However, year-to-date, its share price is still down 40.2% from 97 sen.  

Tan Choe Choe