KUALA LUMPUR (Nov 30): Uzma Bhd saw its net profit increased to RM8.83 million or 2.51 sen per share for its first quarter ended Sept 30, 2022 (1QFY2023), up more than 25 times from RM347,000 or 0.11 sen per share a year earlier and the highest since it reported a net profit of RM9.43 million for 1QFY2020.

Uzma said after adjusting for non-cash transactions which, mainly due to the appreciation of US dollar currency against the ringgit in current quarter, resulted in net unrealised loss on foreign exchange of RM3.7 million, its net profit stood RM13.6 million.

According to the oil and gas (O&G) service and equipment company’s latest financial report released on Wednesday (Nov 30), the operating profits from its upstream O&G services rose 61% to RM27.1 million.

The group said the gross profit margin was higher at 43.9% in the quarter under review, as compared to the corresponding quarter last year at 41.1%, as it previously had to comply with the higher standard operating procedure costs during the pandemic.

The company also reported a 20.1% increase in revenue to RM121.8 million in 1QFY2023, compared to RM101.4 million in 1QFY2022. It reasoned that the higher revenue was generated from its trading segment arising from higher trade activities in commodities.

The RM121.8 million in revenue is the highest quarterly revenue since 4QFY2020, when it reported a revenue of RM151.75 million.

In terms of prospects, Uzma said oil prices remain volatile as demand may be dented from global recession worries and China's rising Covid-19 case numbers.

“However, the positive impact of a retreat in the US dollar and European Union embargo on Russian oil set to start in December 2022 and will be followed by a halt on oil products imports in February 2023 may potentially increase the oil prices,” the company said.

Besides the upstream O&G services and trading segments, Uzma also operates a new energy segment as well as a digitalisation and technology segment.

On Wednesday, Uzma shares closed 4.5 sen or 10.84% higher at 46 sen, valuing the group at RM160 million.