And So UZMA Bagged ANOTHER Contract...

I saw the following headline on the Edge: Uzma subsidiary bags another O&G contract

I went 'hmmmmmm'.... 'another'?

I was very aware that last month on 22nd Oct, Uzma made the following announcement. Taken from Bursa website.

• The Company is pleased to announce that its wholly-owned subsidiary company, Uzma Engineering Sdn Bhd (“UESB”) had on 18 October 2010 received a LA dated 14 October 2010 from a national oil company (“NOC”). Pursuant to the LA, UESB has been appointed as one of the contractors for the provision of subsurface studies for routine and enhance oil recovery (EOR) services for an initial period of three (3) years from the date of LA. It should be noted that the Subsurface Contract does not constitute or imply a commitment by the NOC to award any specific volume of works to UESB. The commitment to award any specific volume of works shall be made through issuance of work orders.
  
  The Subsurface Contract will consist amongst others, studies covering the following areas:
  • Review and analyze wells and/or reservoirs data to optimize field production and access hydrocarbon volume for the field
  • Integrate subsurface engineering data to define Area Development Plan which involve more than 1 field.
  • Integrate and analyze field data to optimize depletion plan and identify other development potential to add reserve, including EOR potential. Review data to determine the most suitable EOR method and identify risks to quantify additional reserve addition and cost effectiveness
  • Undertake detail study and resource evaluation and propose development plan for optimum hydrocarbon recovery
  
  The Subsurface Contract will not have material effect on the earnings of the Company for the financial year ending 31 December 2010 until the specific work order is issued. Upon issuance of specific work order, the Company expect the Subsurface Contract to contribute positively to its future earnings.

I was surprised that there was no 'monetary' value mentioned.

Anyway, the Edge wrote the following today...

• Uzma subsidiary bags another O&G contract
  Written by Financial Daily
  Wednesday, 03 November 2010 11:20
  
  KUALA LUMPUR: Uzma Bhd’s subsidiary has secured a RM15 million contract from an oil and gas (O&G) company for addition and extension of the Low Pressure System (LPS).
  
  Uzma yesterday announced to Bursa Malaysia that its unit Uzma Engineering Sdn Bhd’s contract would include the supply of equipment, manpower and consultancy. The contract extension is for two existing LPS units and to supply an additional new LPS unit.
  
  The period for the LPS units under the contract was increased from three months to five months, effective from November 2010 to March 2011.
  
  The oil engineering specialist said the contract was expected to contribute positively to Uzma’s earnings for FY2010 and FY2011 ending Dec 31.
  
  Prior to this, Uzma also announced that the unit, Uzma Engineering, has been appointed as a contractor by a national oil company (NOC) to provide subsurface studies for routine and enhance oil recovery (EOR) services.The contract is for an initial period of three years starting Oct 14, 2010.
  
  However, Uzma noted that the subsurface contract did not constitute or imply a commitment by the NOC to award any specific volume of works to Uzma Engineering.
  
  “The commitment to award any specific volume of works shall be made through issuance of work orders. Upon issuance of specific work order, the company expects the subsurface contract to contribute positively to its future earnings,” it said.
  
  Hence, Uzma does not expect the contract to have any material effect on its earnings for FY2010.
  
  
  This article appeared in The Edge Financial Daily, November 3, 2010.

Alamak!

A 15 million contract and the Edge is banging on the war drums so loud. Yeah, another contract, that's what so important. :P

Here is UZMA's most recent earnings announced on Aug 2010: Quarterly rpt on consolidated results for the financial period ended 30/6/2010 ( Ahem... err... UZMA doing 'well' eh? :P )

Then I realised that I posted on UZMA before!

LOL!

No joke dude!

On 27th May 2010, I posted Comments On Uzma Holdings

*whistle*

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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.

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