KUALA LUMPUR: Uzma Bhd’s 40%-owned associate, Sazma Aviation Sdn Bhd, has bagged RM166.5 million worth of contracts from Petronas Carigali Sdn Bhd to provide aviation services.

The first contract, valued at RM12.5 million, is to provide helicopter services for Carigali’s well drilling campaign in Sabah, while the second job, worth RM154 million, involves providing aviation services for its Sabah operations.

The first contract is for six months effective from May 15, 2015 with an extension option of three months. The second contract is for five years effective March 23, 2015, with an extension option of one year until March 22, 2021.

Uzma warned that the key determinant factor for the viability of offshore operations, with aviation services being part of them, is oil price. “The project could become sub-economic if crude oil dips below US$25 (RM90) to US$30 per barrel.” Uzma posted a 4.4% drop in net profit to RM8.05 million for its first quarter ended March (1QFY15) from RM8.43 million a year ago. Higher gross profit was not enough to offset higher administrative and operating expenses and higher finance costs, it said.

Revenue grew 52% to RM148.53 million in 1QFY15, contributed by long-term contracts. Uzma remains optimistic about its prospects for the remaining period of FY15 and FY16.

This article first appeared in The Edge Financial Daily, on May 26, 2015.