Oil and gas services provider Uzma Bhd hopes to conclude talks with a Mongolia-based company on an exploration and drilling contract by year-end, said managing director and chief executive officer Datuk Kamarul Redzuan Muhamed.
”We cannot disclose the value of the contract for the time being. Discussions are currently at the advanced stage with details of the contract being finalised. We hope to conclude talks by year-end,” he said at the company's listing on the Bursa Malaysia second board yesterday.
Uzma opened 20 sen below its offer price of RM1.90.
Commenting on the opening price, Kamarul said the company was pleased with the stock's performance despite the lacklustre trading on Bursa Malaysia.
“Our fundamentals are still strong and our plan is on track. There are exciting things ahead for the group,” he said.
Uzma, which has a presence in more than 30 countries, has an order book of RM129mil. It recently secured a US$100,000 contract in Iran for a software job.
“We have close to about 70% of the order book that we forecast for 2008,” Kamarul said, adding that the group was tendering for about RM450mil worth of jobs.
He said the success rate of the tenders depended on the type of jobs pitched for.
“For our core businesses of geoscience and reservoir engineering, and drilling services, we have been looking at 35% to 40% success rate.
“On project and operation sites which is something new for us, the success rate is 15% to 25%,” he added.
Uzma also planned to set up operation offices in India by year-end and in North Africa by end-2009, Kamarul said.
“Uzma will also strengthen its international presence by expanding its business coverage in existing overseas markets such as Indonesia, the Middle East, Thailand and Australia by end of this year,” he added.
He said the company was expecting a 35% year-on-year growth this year.
Source : The Star
