Uzma shares rise on Petronas RSC deal award

KUALA LUMPUR: Uzma Bhd's share price on Bursa Malaysia rose in early trading today after the company was awarded the fifth risk service contract (RSC) by Petronas during the Offshore Technology Conference Asia 2014 last week.

As at 10.24am, the company's share price rose five sen to RM6.50 with 65,800 shares transacted.

Hong Leong Investment Bank said the contract award was in line with its expectation, given Uzma's experience and knowledge in full field review and

reservoir studies.

"To recap, Uzma has recently proposed a renounceable rights issue of up to 132 million rights shares, which are expected to raise up to RM90 million.

"We believe the fund raised will be used for potential special project(s) such as marginal fields, enhanced oil recovery and others," it said in a research note today.

The research firm has maintained its 'hold' call on Uzma with an unchanged target price of RM6.16.