Uzma, via its subsidiary MMSVS, secured a contract from PTTEP International Ltd for the provision of standard and special application of coiled tubing and pumping services for Zawtika Operations (Backup Contract). The contract is worth RM43.9m with duration of 2 years and 1 month until 30th June 2026. This is the sixth contract and the second regional one announced for FY24. We are positive on this development as it showcases Uzma’s capability in securing contracts in the region, particularly in Thailand, through MMSVS. Revenue contribution from regional operations was about 20% of the total Group revenue in FY23. Moving forward, Uzma aims to increase revenue diversification within the region, mainly from Indonesia and Thailand, which could be achieved by pioneering Electrical Submersible Pump (ESP) solutions. We maintain our Outperform call and TP RM1.70 (though potentially reducing to RM1.48 after full subscription of the private placement exercise).
Source: PublicInvest Research - 14 May 2024
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Created by PublicInvest | Nov 12, 2024