PETALING JAYA: Uzma Bhd’s prospects appears promising, given its status as a brownfield services provider with plans to bid for more contracts.

       However, the disruptive Covid-19 Omicron variant could delay economic activities and investments into brownfields.

       TA Securities Research in its latest report remained confident that investments will still pour into the brownfield sector in the long term.

       It also believed that Uzma will be able to leverage on Petronas’ tender projects for existing brownfield assets.

       Uzma focuses on maintaining oil wells which are currently in operation as well as optimising production levels on the existing oil and gas (O&G) assets and platforms.

       The group’s current O&G order book of RM2.4bil translates to more than six times financial year 2021 (FY21) revenue.

       This amount includes the assumptions for contracts worth RM1.04bil that have yet to be secured.

       Given the Omicron’s threat, the research house has tweaked its forecast assumptions and reduced FY22 order book replenishment to RM400mil from its previous projection of RM500mil.

       TA Securities has also lowered the well services and production services order book recognition rate by 10% to 15% in 2022.

       It added that Uzma’s gradual inroads into green ventures will lead to upward re-rating of its environmental, social and governance ratings.