Comments On Uzma Holdings

Here's another 'one'....

Uzma Holdings was listed on July 2008.

On Oct 2008, it was featured in Businessweek article: Hot on the oil trail

• ..... Uzma has made a net profit forecast of RM14.7mil on the back of RM190mil revenue for year ended December 2008. Up to June 2008, Uzma has delivered a net profit of RM6.8mil on revenue of RM69.38mil.
  
  Kamarul says the company is confident of achieving its profit forecast, as the bulk of contracts comes in the second half of the year.
  
  ... With oil prices having dipped from its peak of US$147 in July to about US$67 recently, is there still interest and feasibility in exploration?
  
  Kamarul is confident of the oil and gas industry remaining robust as there is still no alternative to fossil fuel.
  
  “We started our business when oil prices were at the US$12 level. If we can sustain at US$12 per barrel, I think we can pretty much sustain at these levels,” says Kamarul.
  
  He foresees oil prices remaining high, as the difference between demand and supply for oil has narrowed significantly in the last 5 years.
  
  “At US$60, oil producers are still very profitable as the lifting cost of oil is US$16 to US$20.

Feb 2009: Quarterly rpt on consolidated results for the financial period ended 31/12/2008

Uzma Q4 earnings came in at 3.201 million. Net earnings for its firscal year after listing was 10.779 million.

11 May 2009. Uzma expects double-digit growth in net profit

• Uzma expects double-digit growth in net profit
  Written by Yantoultra Ngui Yichen
  Monday, 11 May 2009 10:37
  
  KUALA LUMPUR: Uzma Bhd, an upstream oil and gas services company, expects to record double-digit growth in net profit for the fiscal year ending Dec 31, 2009 (FY09) on the back of new potential contracts coming in and the launch of its proprietary service technology.
  
  Its chief executive Datuk Kamarul Muhamed said the Second Board-listed company was confident of securing a major portion of the RM1.2 billion worth of contracts it was currently bidding for, both locally and overseas.
  
  “We are confident based on the successful applications of our new service package - uzmAPRES - in pilot studies and we are currently patenting the technology,” he told The Edge Financial Daily.
  
  “Hopefully by August this year, we will know the outcome of a major portion of our bidding process.”.....

Double digit growth...

29 May 2009: Quarterly rpt on consolidated results for the financial period ended 31/3/2009. Net earnings slipped to 1.044 million.

21 Nov 2009.

• INTERNATIONAL oil and gas services provider Uzma Bhd, which is spreading its wings in Mongolia, has found more oil at the inner parts of the country with its first venture into new territory of on-shore heavy oil.
  
  Uzma said its growth in the region of inner Mongolia is now imminent with the successful completion of the Baiyin Chagan Da-9 drilling campaign.
  
  The wells can produce an estimated 65 million barrels of oil per day...

On the same day Uzma diversifies into exploration and production

Two days later, 23 Nov 2009: Quarterly rpt on consolidated results for the financial period ended 30/9/2009. UZMA lost 1.832 million!

Company said the following..

• Compared to the previous quarter, the Group’s revenue has reduced by RM8.32 million in the current quarter representing a decrease of 28.1%. The decrease in Group’s revenue was mainly due to delay in awarding new contracts by customers and delay in project completion of existing projects and in the current quarter.
  
  In addition, the Group has recorded a loss before taxation of RM2.38 million in current quarter as compared to a profit before taxation of RM2.56 million in previous quarter. The loss before taxation in current quarter was mainly due to weaker sales in the current quarter as highlighted above and higher operating expenses incurred in the current quarter. The increase in operating expenses was mainly due to higher staff cost incurred in the current quarter.

3 months later, Feb 2010. Quarterly rpt on consolidated results for the financial period ended 31/12/2009

Uzma lost 8.429 million for the quarter!

• The decrease in revenue was mainly due to slower completion of existing projects in 2009 from Geoscience and Reservoir Engineering division (“GRE”). The GRE’s revenue has decreased from RM30.43 million in 2008 to RM17.18 million in 2009, representing a decrease of RM13.25 million or 43.54%. In addition lower sales are recorded in Resource Management division (“RMS”). The RMS’s revenue has decreased from RM88.59 million in 2008 to RM67.35 million in 2009 representing a decrease of RM21.24 million or 24.00%.
  
  In line with decrease of revenue mentioned above, the Group’s gross profit has also decreased from RM31.72 million in 2008 to RM18.41 million in 2009.
  
  As a consequence of the lower revenue and gross profit recorded, the Group has recorded a loss before taxation of RM7.41 million in 2009 as compared to a profit before taxation of RM13.11 million in 2008. We wish to highlight that the losses incurred in 2009 was also due to higher operating expenses incurred by the Group in 2009 and additional cost incurred for setting up a new division which is expected to commence business activity by second quarter of 2010. In addition, the management had on prudence ground, make provision for doubtful debts for certain long outstanding amounts.

So UZMA lost 7.457 million for the fiscal year.

Last night, UZMA reported its earnings.
Quarterly rpt on consolidated results for the financial period ended 31/3/2010

It lost money yet again, 2.676 million. 3 consecutive quarters of losses!

Company comments...

• Compared to quarter 1 (“Q1”) 2009, the Group’s revenue in Q1 2010 has decreased by RM5.56 million, representing a decrease of 21.4% .
  
  The decrease in revenue was mainly due to slower completion of existing projects in Q1 2010 from Geoscience and Reservoir Engineering division (“GRE”). The GRE’s revenue has decreased from RM5.49 million in Q1 2009 to RM3.07 million in Q1 2010, representing a decrease of RM2.42 million or 44.1%.
  
  In line with decrease of revenue mentioned above, the Group’s gross profit has also decreased from RM6.08 million in Q1 2009 to RM3.26 million in Q1 2010.
  
  As consequences of the lower revenue and gross profit recorded, the Group has recorded a loss before taxation of RM2.63 million in Q1 2010 as compared to a profit before taxation of RM1.53 million in Q1 2009. We wish to highlight that the losses incurred in Q1 2010 was also due to higher operating expenses incurred by the Group and additional cost incurred for setting up a new division which is expected to commence business activity by second quarter of 2010.
  
  
  
  Compared to the previous quarter, the Group’s revenue has decreased by RM1.45 million in the current quarter representing a decrease of 6.6%. However, the Company’s loss before taxation has reduced by RM11.58 million representing a decrease of 81.5%. The reduction was mainly due to allowance for doubtful debts made in previous quarter.

How?

UZMA last traded 1.74.