PETALING JAYA: Uzma Bhd is poised for a return to earnings growth from Q2 FY27, supported by a recovery in oil and gas (O&G) activity and stronger contributions from its energy-related businesses.
Phillip Capital Research said seismic vessel utilisation is expected to recover to above 90% after dry-docking is completed, while upstream O&G activity should gradually pick up following Petroliam Nasional Bhd’s (Petronas) portfolio optimisation and operatorship realignment in Q1 FY27.
The research house said Uzma’s FY27 earnings would also be supported by the full-year contribution from its acquisition of Johnson Pump in December 2025 and the Third-Party Access (TPA) pipeline gas supply contract secured in Q3 FY26.
To recap, Uzma completed the acquisition of Johnson Pump (M) Sdn Bhd and Johnson Pump Oil & Gas (M) Sdn Bhd in December 2025 for RM33.2 million.
The acquisition expanded Uzma’s oil and gas services portfolio into pumping services, particularly in the downstream segment, and added an established customer base.
Uzma had previously indicated that the businesses were expected to contribute about RM5 million in annual profit after tax and minority interest.
Uzma’s TPA pipeline gas supply business allows the group to supply natural gas to industrial customers through Malaysia’s regulated gas distribution infrastructure. Under the TPA framework, companies can access gas infrastructure for activities including transportation and distribution.
Uzma began recognising revenue from its TPA pipeline gas supply contracts in Q3 FY26, with the business forming part of its broader energy trading segment alongside its LNG virtual pipeline and small-scale regasification operations.
Phillip Capital Research also said the group’s new energy business is expected to contribute more, with power generation capacity projected to rise to 150MWp in FY27 from 100MWp in FY26.
Meanwhile, the Sara WIF2.0 project, which was 85% complete as of August, is expected to begin contributing in Q3 FY27.
Sara WIF2.0 is Uzma’s second mobile water injection facility, designed to support enhanced oil recovery by injecting water into an offshore oil reservoir to maintain pressure and improve hydrocarbon production. The facility was converted from a mobile offshore drilling unit and is being deployed in East Malaysia.
Uzma said its water injection technology can help extend the productive life of mature oil fields, with the SARA facility expected to contribute about RM65 million in annual revenue at full capacity.
Phillip Capital Research noted that Uzma’s tender pipeline had expanded significantly, with its tender book rising 81% quarter-on-quarter to RM5.6 billion as at June 2026, comprising 67% non-O&G and 33% O&G opportunities.
“We reiterate our ‘Buy’ rating and unchanged target price of RM0.76, based on an unchanged 6x price-to-earnings (PE) multiple on FY27 earnings per share.
“At current levels, Uzma is trading at 3x FY27E PER, which we view as undemanding given its strengthening earnings outlook.
“Key risks to our ‘Buy’ call include lower-than-expected customer work orders, unforeseen project delays, and rising project execution costs,“ Phillip Capital Research said.
