Hi guys,
May 2019 Reporting Season Will Throw Up More disappointments than surprises
Why so?
Answer:
1) MOST CONSTRUCTION COMPANIES WILL FACE COMPRESSED MARGINS
Compressed Margins for most construction companies as PH Govt sqeeze margins. Of course there are fresh Job Awards from ECRL, Revived MRT & LRT Jobs & even Bandar Malaysia
But these Jobs will only bring in Real Profits for future quarters
2) CONSTRUCTION MATERIAL STOCKS WILL ALSO REPORT WEAK SALES
The recent spike of Lafarge Cement was due to ECRL Revival News & YTL privatisation offer of Rm3.75
But expect Lafarge's immediate result to be bad as well. So are other Cement companies like Tasek & all other Long Steel stocks
3) MOST PROPERTY STOCKS ALSO MEDIOCRE OR POOR
With stringent housing loan & glut this will also face bleak reporting
4) CONSUMER STOCKS IMPACTED BY HIGH IMPORT PRICES AS WELL AS SUGAR TAX
5) GLOVES, PLASTIC STOCKS, LOGISTIC & EVEN CLOTHES MANUFACTURING WILL GENERATE LESS PROFIT
This is due to high Crude Oil Price which means higher resin prices. As Gloves, Plastic & synthetic fibers for clothes are all made from Oil -- so all these will be impacted
Logistic & transport companies will also earn less due to higher petrol & diesel prices
6) PALM OIL STOCKS IMPACTED BY US-CHINA PRICE WAR ON SOYBEAN & GLUT
Although China promised to step up purchases of cpo from Malaysia = there will still be a time lag
SO HOW NOW?
There is One Exception = OIL & GAS STOCKS
1) OIL & GAS STOCKS DUE TO FRESH CAPITAL INJECTION FROM PETRONAS
PETRONAS' RAPID REFINERY NEEDS 54.7 MILLION BARRELS OF CRUDE OIL YEARLY AS THE RM100 BILLIONS MAMMOTH REFINERY IN PENGERANG IS READY SOON
SO PETRONAS HAS INCREASED SPENDING SINCE YEAR 2018 & EVEN MORE FOR YEAR 2019 (RM30 BILLIONS FOR UPSTREAM)
2) PH GOVT WANTS PETRONAS TO INCREASE REVENUE BY ADDING ANOTHER RM30 BILLIONS PAYOUT
SO PETRONAS WILL RAMP UP EXPLORATION AND EXTRACTION
3) JUST IN FOR GOOD TIME = BRENT CRUDE NOW REBOUNDED TO USD70 (ABOUT RM290) PER BARREL - MAKING IT VERY PROFITABLE TO STEP UP MORE OIL ACTIVITIES
AND THIS IS THE REASON WHY WE SHOULD BE BULLISH IN A BULL RUN TIME FOR OIL
EVEN WARREN BUFFET INVESTED IN OIL STOCK RECENTLY
SEE
Warren Buffett's $10 Billion Oil Investment: What You Need to Know
Berkshire Hathaway is putting some of its cash hoard to work in the oil industry.
Investors who are fed up with Berkshire Hathaway's (NYSE:BRK-A) (NYSE:BRK-B) ever-increasing cash stockpile just got a reason to smile.
Berkshire Hathaway is making a $10 billion investment in oil company Occidental Petroleum(NYSE:OXY) to help the company acquire Anadarko Petroleum (NYSE:APC). This is the largest investment Berkshire Hathaway has made in some time. However, this isn't just a common stock investment, so here's a rundown of what investors need to know.
Some details on this investment offer
In exchange for the $10 billion, Berkshire is going to receive preferred stock that pays an annual dividend of 8%. So Berkshire is set to receive $800 million in annual income from the investment.
In addition, Berkshire will have warrants to buy as many as 80 million shares of Occidental for $62.50 per share. Some simple math tells us that this essentially gives Buffett the option to convert half ($5 billion) of his investment into common stock at this predetermined price.
The investment is contingent on the completion of Occidental's proposed acquisition of Anadarko. Occidental recently topped Chevron's (NYSE:CVX) bid for Anadarko by offering $38 billion for the company -- a $5 billion premium to Chevron's offer. Anadarko is still considering Occidental's offer while its agreement with Chevron is in place. It's also possible that Chevron could choose to increase its $33 billion bid.
In many ways, this investment is right up Berkshire's alley. The company has no shortage of energy-related investments, both in its stock portfolio and in its collection of wholly owned subsidiaries. And the investment structure where Berkshire receives a combination of preferred stock and warrants isn't anything new.
Read again
In many ways, this investment is right up Berkshire's alley. The company has no shortage of energy-related investments,
NOW I HAVE ALREADY MENTIONED THESE GREAT OIL AND GAS STOCKS = CARIMIN, NAIM/DAYANG, PENERGY, AZRB, VELESTO, PANTECH, DIALOGUE, DESTINI & T7 GLOBAL
WHY UZMA NOW?
THE ANSWERS ARE MANY
FIRST SEE WHAT i3 FORUM REPORTED
Business Background (extracted from Uzma page from i3 investor forum)
Uzma Bhd provides integrated solutions to the upstream sector across the exploration, development and production operations and to the facilities/plant construction, operations and maintenance of the downstream sector. Uzma provides the full spectrum of the oil and gas operational services and solutions. Uzma’s offering includes solutions and services in the field of Geoscience and Petroleum Engineering Services, Drilling and well Services and Production Optimization and Operation Services.
And these are some salient facts
1) Uzma Bhd provides integrated solutions to the upstream sector across the exploration, development and production operations and to the facilities/plant construction, operations and maintenance of the downstream sector.
Uzma Bhd provides integrated solutions upstream sector & downstream sector.
2) Uzma provides the full spectrum of the oil and gas operational services and solutions
(((Please scroll down much further to read the rest)))
THAT MEANS THAT UZMA LIKE PETRONAS IS INVOLVED IN A WHOLE PLETHORA OF OIL & GAS INDUSTRIES = MASTERING IN ALL AREAS WHERE PROFITABLE
NOW LET'S TAKE A CLOSER LOOK AT ALL ITS JOBS AWARDED
Please refer to latest Quarterly Report from UZMA
PROSPECTS AND PROGRESS TO ACHIEVE FORECAST FOR NEXT FINANCIAL YEAR Barring any unforeseen circumstances, the Directors remain optimistic with the Group’s prospects for the remaining period to the end of financial year and next financial year, based on the positive developments of the Company specific in PTD 2018 as follows
(i) On 1 April 2014, the Company announced that a contractor Group that includes its wholly owned subsidiary, Uzma Energy Venture (Sarawak) Sdn. Bhd. and EQ Petroleum Developments Malaysia Sdn. Bhd. (“Contractor Group”), had on 27 March 2014 signed a Small Field Risk Service Contract (“SFRSC”) with Petroliam Nasional Berhad to carry out the development and production of petroleum from the Tanjung Baram Fields.
(ii) As announced on 10 July 2015, UESB was awarded by PETRONAS Carigali Sdn Bhd (“PCSB”) with a contract for Leasing, Operation and Maintenance of the D18 Water Injection Facility for PCSB. The contract value is estimated at RM350 million to RM400 million. The duration of the contract is for 5 years leasing period effective from 31 March 2016. (NOTE: RM350 MILLIONS JOB LAST FROM MARCH 2016 TO MARCH 2021)
(iii) As announced on 6 February 2017, UESB was awarded by PETRONAS Carigali Sdn Bhd with an Umbrella Contract for the Provision of Electric Wireline Logging (EWL). The contract will run for a duration of 3 years, commencing from 1 December 2016 to 30 December 2019, with two extension options of 1 year each for Cased Hole Logging Services across the Pan Malaysia area. Upon issuance of specific work order, the Company expects the contract to contribute positively to its future earnings.
(iv) As announced on 28 February 2017, Uzma Engineering Sdn. Bhd. (“UESB”) was awarded by Murphy with a contract for the Provision of Hydraulic Workover Unit and services. The contract will run for a duration of 2 years with an extension option of one (1) year. Upon issuance of specific work order, the Company expects the contract to contribute positively to its future earnings. (FEB 2017 + 2 YEARS = FEB 2019 = JUST IN TIME FOR JAN - MARCH 2019 QUARTER TO BE ANNOUNCED IN MAY 2019 OR ANYTIME NOW)
(v) As announced on 22 March 2017, UESB was awarded by PETRONAS Carigali Sdn Bhd with a contract for the Provision of Fishing Equipment and Services and services. The contract will run for a duration of 2 years with an extension option of one (1) year. Upon issuance of specific work order, the Company expects the contract to contribute positively to its future earnings. (MARCH 2017 + 2 YEARS = MARCH 2019 RESULT IN MAY 2019 SOON)
(vi) As announced on 9 January 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd three (3) umbrella contracts for the provision of electrical submersible pump (“ESP”) and services for PCSB as follows:- (a) Supply of Joineted Tubing ESP and the Deployments; (b) Supply of Coiled Tubing ESP and the Deployment; and (c) Surveillance, Monitoring and Maintenance of ESP. The tenure of the contract is three years from 20 November 2017 to 19 November 2020 with first extension option of one (1) year. Upon issuance of specific work order, the Group expects the contract to contribute positively to its future earnings.
(vii) As announced on 17 January 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd for the provision of Hydraulic Workover Unit (“HWU”) – “Ghazi 461” from 28 December 2017 until completion of three (3) firm well with extension option of a further six (6) wells. Upon issuance of specific work order, the Group expects the contract to contribute positively to its future earnings. (NOTE : 3 FIRM WELLS PLUS 6 MORE = 9 WELLS)
(viii) As announced on 1 March 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd for an umbrella contract for the Provision of 150K, 225K and 460K Drilling of Hydraulic Workover Unit (HWU). The tenure of the Umbrella Contract is three (3) years from 6 February 2018 to 5 February 2021 with an extension option period of one (1) year. Upon issuance of specific work order, the Group expects the contract to contribute positively to its future earnings. (THESE ARE PAY AS YOU USE JOBS SO GOT PROGRESSIVE BILLINGS))
(ix) As announced on 27 April 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd for an umbrella contract for the Provision of Well Abandonment Integrated Services. The tenure of the Umbrella Contract is two (2) years from 29 March 2018 to 29 March 2020 with an extension option period of one (1) year. Upon issuance of specific work order, the Group expects the contract to contribute positively to its future earnings.
(x) As announced on 25 July 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd for an umbrella contract for the Provision of Drilling Fluids and Associated Services. The tenure of the Umbrella Contract is five (5) years from 30 May 2018 to 30 May 2023. Upon issuance of specific work order, the Group expects the contract to contribute positively to its future earnings.
(xi) As announced on 7 August 2018 and 8 August 2018, UESB was awarded by PETRONAS Carigali Sdn Bhd a work order for the Provision of Well Abandonment Integrated Services for Pulai-A (“the Work Order”). The tenure of the Work Order is from 2 July 2018 until the completion of 22 firm wells which is estimated to be within the next 12 months. The Group expects the Work Order to contribute positively
(AHA! THIS ONE HAS 22 FIRM WELLS DECOMMISSIONING) OR 22 JOBS IN ONE AWARD FOR 12 MONTHS OR ONE YEAR PERIOD. EXPECTED TO GIVE A GROSS PROFIT OF OVER RM14 MILLIONS OR ABOUT 4.5 SEN)
AND MORE JOBS AWARDED THIS YEAR IN 2019
JOB AWARDED BY INDONESIA
OTHERS LETTER OF AWARD -CONTRACT FOR THE PROVISION OF DIRECTIONAL DRILLING SERVICES FOR PT PERTAMINA HULU ENERGI ONSHORE NORTH WEST JAVA (PHE -ONWJ) CONTRACT NO: 4710002670
NOW ALL THESE ARE POSITIVE NEWS. AND SEE WHO IS BUYING
SO UZMA IS A STOCK GOING TO SEE GREAT RESULTS FOR YEAR 2019
BEST REGARDS
Calvin Tan Research
Singapore
Please buy or sell after doing your own due diligence
GTMS
lousy research again Calvin
2019-05-13 08:21