Oil Hit New High – Top 3 Stocks to Watch

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    Oil price hit new high after tumbling in mid of 2014. Let us look at the top 3 stocks in KLSE that are believed to become the top performer if oil will be the new trading theme!


    1. ARMADA (5210.KLSE)

    ARMADA, with a market capitalization at 4517 Millions and 5859 millions of outstanding shares, is one of the biggest player in Malaysia’s oil and gas industry. Its market capitalization is just behind DIALOG (12299 Mil) and SENERGY (8749 Mil). ARMADA had its latest quarter’s revenue (694 Mil) topped after the oil price tumbled in mid of 2014. The company managed to turn around in the first quarter of 2017 and its profit before tax in the second quarter of 2017 increased to 186 Millions. Its third quarter’s company result is expected to be announced in the end of November.

    Bumi Armada Berhad (“Bumi Armada”) is a Malaysia-based international offshore energy facilities and services provider. It provides offshore services via two business units – Floating Production and Operation (“FPO”) of oil and gas solutions and Offshore Marine Services (“OMS”) which comprises of Offshore Support Vessel (“OSV”) and Subsea Construction (“SC”) services.

    2. UMWOG (5243.KLSE)

    UMWOG, with a market capitalization at 2380 Millions and 8216 millions of outstanding shares, has its loss started to shrink in its last quarter result. Amanahraya Trustees Bhd and EPF were seen actively acquiring UMWOG shares in recent two months. Its third quarter’s company result is expected to be announced in the end of November.

    UMWOG just listed new 4.836 billion new shares issued under its renounceable rights issue and 1.51 billion new warrants issued pursuant to the rights issue, under its restructuring exercise to turn around the loss-making company on 25 October 2017. As seen from UMOWG price chart, stock price starts to rebound after this new listing of share as market accepted it as catalyst to its future growth. UMWOG that was demerged from UMW group is mainly involved in offshore drilling, hydraulic workover services and oilfield services.

    3. UZMA (7250.KLSE)

    UZMA, with a market capitalization at 460.84 Millions and 320 Millions of outstanding shares, is a smaller oil and gas player in Malaysia. Uzma Group is an international oil and gas service company providing an array of effective services to the upstream sector across the exploration, development and production process and to the downstream sector for facilities/plant construction, operations and maintenance process.

    One of the fact that surprised us is that after the oil price tumbled, UZMA only had one quarter that was loss-making, which is in the third quarter of 2015. Overall, the company managed to maintained its profitability for every fiscal year after year 2010. UZMA is currently traded at 1.44 (P/E 14.14).

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