KUALA LUMPUR (Sept 8): Contrary to the dip in crude oil price which is currently trading below US$50 per barrel again, Uzma Bhd’s shares have rebounded to trade 1.08% higher, backed by the group’s confidence on an up to 40% growth in revenue for at least the next three years.

As at 11.28 am, the stock rose 2 sen higher to trade at RM1.87 per share, with a total of 110,800 shares having changed hands.

This is on the back of yet another below US$50 dip in oil prices yesterday (Sept 7). Currently, Brent crude oil prices is trading at US$48.07 per barrel, while WTI crude trades at US$44.75 per barrel.

Since the crash in oil prices which have more than halved since mid-last year, when it was trading more than US$110 per barrel, Uzma’s shares have slid along with the commodity. The oil and gas service provider saw 64.87% dive to a one-year-low of RM1.32 in December last year, from a peak of RM3.75 during the same period.

In a recent interview with digitaledge Weekly, Uzma’s CEO Datuk Kamarul Redzuan Muhamed said although the fall in crude oil prices has taken a toll on the company’s share price performance, the group is in a safe spot, as it is involved in a business that mainly caters for fields that are in production.

“They (oil companies) need to produce regardless (of the price environment), and they probably need to produce more with the drop in prices. So, Uzma is in the right kind of market (brownfield service),” Kamarul told the weekly digital paper.

Kamarul’s confidence stems from the group’s order book, which stands at RM2.7 billion, that will keep Uzma busy until 2021; as well as the group’s ability to provide services to oil companies so that they can produce oil, economically.

With that, Kamarul is of the view the company is doing well and is still looking at a revenue growth of 30% to 40% in the next three years.

As of now, the group had just recently recorded a 1.35% increase in net profit of RM17.31 million for the first half of its financial year that ended June 30, 2015 (1HFY2015). This is on a 41.28% rise in revenue to RM288.62 million, during the same period.

(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.)