Advances OMS’s Strategy to Diversify and Scale Specialty Connector Sales Across New International MarketsSINGAPORE, Jan. 28, 2026 (GLOBE NEWSWIRE) -- OMS Energy Technologies Inc. (“OMS” or the “Company”) (NASDAQ: OMSE), a growth-oriented manufacturer of surface wellhead systems (“SWS”) and oil country tubular goods (“OCTG”) for the oil and gas industry, today announced its wholly-owned subsidiaries in Singapore and Indonesia have secured new specialty connector orders totaling approximately US$2.2 million f ...

Core Viewpoint - OMS Energy Technologies Inc. has achieved API Specification 6A certification for its subsidiary OMS Oilfield Services Arabia Ltd., enhancing its market position and potential for high-value contracts in the oil and gas industry [1][2]. Group 1: Certification Impact - The API Spec 6A certification is a critical requirement for Middle Eastern oil producers, significantly enhancing OMS Saudi's appeal to major operators and increasing revenue opportunities [2]. - This certification verifies that OMS Saudi's repair and maintenance practices meet the highest industry standards for quality, safety, and reliability [2]. Group 2: Subsidiary Performance - OMS Saudi, the largest subsidiary of OMS, has a 15-year track record of technical excellence and manufacturing expertise, providing premium equipment and services to regional oilfield companies [3]. - The new certification positions OMS Saudi to convert its regional relationships and technical capabilities into expanded contracts and service agreements, driving long-term growth [3][4]. Group 3: Strategic Growth - The achievement of API Spec 6A certification allows OMS to expand its suite of engineered wellhead solutions and services in a key strategic market [4]. - OMS Saudi's capabilities in wellhead-related services represent a strategic move into higher-value engineered solutions, complementing its existing product offerings [4][6]. Group 4: Company Overview - OMS Energy Technologies Inc. is a growth-oriented manufacturer of surface wellhead systems and oil country tubular goods, serving both onshore and offshore operators across multiple regions [7]. - The company operates 11 strategically located manufacturing facilities, ensuring rapid response times and customized technical solutions [7].

Core Insights - OMS Energy Technologies (OMSE) is identified as an undiscovered opportunity in the energy sector, with a significant disparity between its fundamentals and valuation [1] Company Overview - OMSE presents a situation where the company's fundamentals and valuation appear to be in completely different universes, indicating potential for growth [1] Investment Perspective - The analysis emphasizes the search for asymmetric opportunities, where the potential upside significantly outweighs the downside, even amidst uncertain timing or paths [1] - The focus is on classic value ideas, but there is also openness to exploring growth or tech opportunities when the risk-reward ratio is favorable [1] - The company is characterized as being overlooked or out of favor in the current market environment, suggesting potential for recovery or growth [1]

Core Insights - The individual has a background in science but currently operates in a business role within the mining industry, focusing on long-term investments and value realization of mispriced assets [1] Group 1: Investment Strategy - The investment approach emphasizes long-term compounders and aims to outperform broad market indices on a money-weighted basis over the long term [1] - The focus is primarily on the mining sector, particularly base metals, while also considering non-mining companies that are well understood [1] - The investment timeline typically ranges from 1 to 5 years, with a preference for high-reward bets rather than broad market ETFs [1] Group 2: Market Engagement - The individual engages in investments after significant price shocks that create opportunities for entry into non-mining companies [1] - The strategy involves sticking to a circle of relative competence, avoiding sectors outside of expertise [1]

Core Viewpoint - OMS Energy Technologies Inc. (NASDAQ:OMSE) is positioned as a promising investment opportunity in the oil sector, particularly following the recent API Spec 11D1 certification obtained by its subsidiary, OMS Indonesia, which enhances its capabilities in the oilfield services market [1][2]. Group 1: Certification and Capabilities - OMS Indonesia has secured API Spec 11D1 certification from the American Petroleum Institute, which validates the company's ability to design, build, test, and quality-check packers and bridge plugs for petroleum and natural gas wells [1][2]. - This certification allows OMS Indonesia to fully design, qualify, and produce its own retrievable mechanical and hydraulic packers, complementing its existing API-6A-certified surface wellheads and Christmas trees [2]. - The ability to integrate these packers with OMS's own systems or third-party equipment is expected to create new contract opportunities in well completion and intervention services [2][3]. Group 2: Market Position and Efficiency - The certification strengthens OMS Indonesia's position as a regional leader by enabling in-house development of high-spec components, which is crucial for meeting the demands of Southeast Asia's growing oilfield market [3]. - This milestone is anticipated to support faster delivery times, cost efficiencies, and compliance with industry standards, enhancing the company's competitive edge [3]. Group 3: Company Overview - OMS Energy Technologies Inc. specializes in manufacturing and selling oilfield equipment, including specialty connectors, pipes, surface wellheads, and Christmas trees for drilling and production operations [4].

Industry Overview - The International Energy Agency's Oil Market Report for November 2025 indicates that oil markets are entering a turbulent phase, with global oil supply increasing by over 6 million barrels per day since January, while demand growth remains modest at under 800,000 barrels per day annually, leading to multi-year low crude prices, such as North Sea Dated crude trading near $62 per barrel, the lowest in four years [2] - Goldman Sachs concurs with this assessment, predicting that current oil supply surges will suppress prices through 2026, but anticipates a rebound with long-term Brent/WTI prices rising to approximately $80/76 by late 2028 [3] M&A Opportunities - Lower oil prices are expected to create acquisition opportunities, as companies with strong balance sheets may capitalize on distress among small-to-midsize producers or service companies facing cash flow pressures, potentially emerging from the downturn in a stronger position [4] - Morningstar identifies the energy sector as the second most undervalued sector, trading at a 9% discount to fair value, suggesting significant growth potential despite current market dynamics [4] Investment Opportunities - The article highlights nine oil-related firms trading under $10 that may benefit from the anticipated oil-price upcycle, presenting an attractive buying window for investors willing to select quality stocks during a downturn [5] Methodology for Stock Selection - The list of 9 Cheap Oil Stocks Under $10 was compiled using stock screeners and financial media sources, focusing on companies with forward P/E ratios under 15 and trading below $10, further refined by reviewing institutional holdings from Q3 2025 [7] Company Highlights - **Kolibri Global Energy Inc. (NASDAQ:KGEI)**: - Stock Price: $4.09, Forward P/E: 8.24, Number of Hedge Fund Holders: 1 - Reported Q3 2025 net revenues of $15 million, a 15% increase from Q3 2024, attributed to a 40% production surge, though offset by an 18% drop in realized prices [9][10] - EPS for the quarter was $0.10, down from $0.14 year-over-year and below the consensus estimate of $0.12 [11] - **OMS Energy Technologies Inc. (NASDAQ:OMSE)**: - Stock Price: $4.80, Forward P/E: 4.36, Number of Hedge Fund Holders: 5 - Secured API Spec 11D1 certification for its subsidiary, enabling in-house development of high-spec components, which is expected to enhance its role in the Southeast Asian oilfield market [13][15]

Core Viewpoint - OMS Energy Technologies, a Singapore-based company, raised US$29 million through its IPO on Nasdaq, but is currently trading lower than its IPO price, indicating potential undervaluation and investment opportunities [1][6][21]. Company Overview - OMS Energy Technologies operates in the oil and gas industry and has been led by CEO How Meng Hock, who has 30 years of experience in the sector. The company was previously under Sumitomo Corporation and faced significant challenges from 2014 to 2019 due to poor oil demand forecasts [2][21]. - The company underwent a management buyout in 2023, initiated by Meng Hock, to ensure the continuity of employment for its 600 employees and their families [3][21]. Financial Performance - OMS has shown a strong financial performance with net income reaching US$34 million within two years post-buyout. The company has zero debt and holds US$126 million in cash, indicating a strong liquidity position [9][10][21]. - The financial metrics for OMS are promising, with gross profit and net income figures for various periods indicating profitability. For instance, in 2H 2025, gross profit was US$68 million and net income was US$47 million [10][11]. Revenue and Client Base - OMS's revenue is heavily reliant on long-term contracts, particularly with Saudi Aramco, which accounted for 67% of its revenue prior to the latest quarter. This reliance introduces fluctuations in revenue recognition due to the nature of call-up orders [12][30]. - The company is actively seeking to diversify its client base and expand its product portfolio to mitigate risks associated with dependency on a single client [29][30]. Cash Management and Future Plans - The company has demonstrated effective cash management, with significant increases in cash holdings over recent periods, attributed to operating cash flow and IPO proceeds [15][21]. - Future plans include potential share buybacks to enhance earnings per share (EPS) and improve market valuation, although there are concerns about the effective use of cash [19][22]. Market Position and Valuation - OMS is classified as a micro-cap company with a market capitalization of approximately US$195.5 million. The current trading price suggests it is undervalued, trading at about 2 times ex-cash price-to-earnings (PE) ratio [7][13]. - The company’s valuation is seen as attractive, especially given its high return on invested capital (ROIC) and the potential for future earnings growth [18][24].

Core Insights - OMS Energy Technologies Inc. has achieved API Spec 11D1 certification for its subsidiary OMS Indonesia, enhancing its product offerings in the oil and gas sector [1][4] - The certification allows OMS to manufacture and integrate certified mechanical and hydraulic packers, expanding its portfolio alongside existing API-6A-certified products [2][4] - OMS has initiated a project with a leading Indonesian energy operator to integrate its certified packers, currently in the qualification stage [3] Company Overview - OMS Energy Technologies Inc. is a growth-oriented manufacturer specializing in surface wellhead systems and oil country tubular goods for the oil and gas industry [5] - The company operates 11 strategically located manufacturing facilities across the Asia Pacific, Middle Eastern, and North African regions, ensuring rapid response and customized solutions [5] - OMS also provides premium threading services to enhance operational efficiency for its clients [5]

Financial Data and Key Metrics Changes - OMS reported revenue of $82.8 million for the first half of fiscal year 2026, down from $129.2 million in the same period of fiscal 2025, but up from $74.4 million in the previous half-year period [8][27] - Free cash flow increased to $26.4 million, up from $23.4 million in the prior year period, demonstrating strong cash generation capabilities [5][25] - The company maintained a debt-free balance sheet with cash and restricted cash totaling $128.7 million as of September 30, 2025 [6][34] - Operating profit was $17.9 million with an operating margin of 21.6%, and net profit was $14.6 million [7][26] Business Line Data and Key Metrics Changes - Specialty connectors and pipes remain the largest revenue segment, while services and welding equipment provide diversification [4][23] - The company experienced strong order growth across various product and service segments in Singapore, Thailand, Egypt, Oman, Indonesia, and the UAE, which helped offset the timing effects from Saudi Arabia [9][28] Market Data and Key Metrics Changes - The company has expanded its customer reach and deepened existing relationships, advancing geographic diversification across Africa, South Asia, and Asia Pacific [10][29] - OMS successfully entered new markets in Angola and Pakistan, and established new customers in Indonesia, including PT Selaraya Belida and Pertamina Hulu Sanga-Sanga [10][29] Company Strategy and Development Direction - OMS aims to pursue organic growth, global customer diversification, product portfolio expansion, and selective M&A and joint ventures [5][24] - The company is focused on maintaining profitability, preserving balance sheet strength, and prudently deploying capital towards long-term, high-return opportunities [35] Management's Comments on Operating Environment and Future Outlook - The management highlighted that the revenue fluctuations are due to the timing of call-up orders from long-term contracts, not a change in underlying demand [8][27] - The company is well-positioned to navigate changes in the industry and seize new opportunities, with a strong focus on innovation and expansion [34][35] - The broader industry outlook indicates potential challenges due to lower oil prices and demand, but OMS's strengths in cost discipline and financial stewardship will help maintain margins [15][33] Other Important Information - OMS is in the final stages of the contract tendering process in Oman and Indonesia, leveraging its reputation for quality and reliability [12][31] - The company is investing in additive manufacturing and R&D to develop new high-performance components and enhance supply chain capabilities [12][32] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call may have concluded without a Q&A segment or that the details were not included in the transcripts.

Financial Data and Key Metrics Changes - OMS reported revenue of $82.8 million for the first half of fiscal year 2026, down from $129.2 million in the same period of fiscal 2025, but up from $74.4 million in the previous half-year period [8][26] - Free cash flow increased to $26.4 million, up from $23.4 million in the prior year period, demonstrating strong cash generation capabilities [5][24] - The company maintained a debt-free balance sheet with cash and restricted cash totaling $128.7 million as of September 30, 2025 [6][34] - Operating profit was $17.9 million with an operating margin of 21.6%, and net profit was $14.6 million [7][25] Business Line Data and Key Metrics Changes - Specialty connectors and pipes remain the largest revenue segment, while services and welding equipment provide diversification [4][22] - The company experienced strong order growth across various product and service segments in Singapore, Thailand, Egypt, Oman, Indonesia, and the U.A.E. [9][27] Market Data and Key Metrics Changes - The company’s long-term supply agreement with Saudi Aramco remains intact, with a sizable and active order backlog [8][26] - The fluctuation in revenue recognition timing is attributed to the timing of call-up orders from a major long-term contract in Saudi Arabia, not a change in underlying demand or market share [8][26] Company Strategy and Development Direction - OMS aims to pursue organic growth, global customer diversification, product portfolio expansion, and selective M&A and joint ventures [5][23] - The company is focused on geographic diversification across Africa, South Asia, and Asia Pacific, with successful expansions into Angola and Pakistan [10][29] - OMS is evaluating strategic opportunities to expand manufacturing capability and international footprint [11][30] Management's Comments on Operating Environment and Future Outlook - The management highlighted the importance of maintaining a resilient balance sheet and prudent debt management amid industry volatility [11][30] - The U.S. Energy Information Administration has increased its Brent price forecast for 2025 and 2026, but oil prices are projected to drop next year compared to 2025 [15][33] - OMS's strengths in cost discipline, low leverage, and efficient operations are expected to differentiate the company in a potentially lower demand environment [15][33] Other Important Information - OMS is investing in additive manufacturing and R&D to develop new high-performance components and improve supply chain efficiency [12][31] - The company is collaborating with Singapore's Agency for Science, Technology and Research on digital transformation initiatives [13][32] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call may have concluded without a Q&A segment or that the details were not included in the transcripts.