UZMA

The company is expecting resilient earnings growth for at least three more years from Aug 2105 albeit in the low crude oil price environment.

The group is in a safe spot because it is involved mainly in a business that caters for fields production.

The confidence stems from the group’s order book – which stands at rm2.7 billion and will keep the group busy until 2021 – and its ability to provide services to oil companies so that they can produce oil economically. There are no activities in exploration now (Aug 2015). The budget has been slashed and production has to continue and the products that UZMA has to offer support existing production.

UZMA is not only involved in exploration but also in the provision of services for already producing. On top of that it has recurring income from its chemical business.

Malaysia needs the production and it does not keep up with production, it would not have any money.

It sees a stronger second half 2015 for the group due to is risk service contract and D18 water injection facility which spill over into FY2016.

Its revenue growth projection is backed by its contract wins in 2015.

Its biggest challenge at the moment (Aug 2015) is margin squeeze.