PETALING JAYA: Fresh contract wins worth RM700mil and a pickup in tender activity amid heightened global energy security concerns are expected to underpin stronger earnings growth for Uzma Bhd
, with analysts anticipating further job wins as upstream activity gathers pace.
According to Phillip Capital Research, the earnings outlook is also supported by improving margins, as higher-margin well solutions and intervention activities gain traction, alongside a more favourable revenue mix.
“We anticipate Uzma to deliver stronger quarter-on-quarter and year-on-year earnings in the fourth quarter ending June 2026 (4Q26), supported by continued high utilisation of its seismic vessel, RM700mil in newly secured oil and gas (O&G) contracts from PETRONAS Carigali Sdn Bhd and EnQuest, and the full deployment of recently acquired pumping services assets.”
It said although the seismic vessel scheduled for dry docking in July 2026 may dampen its deployment rate in 1Q27, management reaffirmed a healthy financial year 2027 utilisation of above 90%.
UOB Kay Hian Research was more cautious, noting that Uzma’s PXGEO 2 seismic vessel is undergoing a six-week retrofit in Singapore after completing survey works in the Langkasuka Basin, resulting in a short-term pause in revenue recognition.
The research house added that existing contracts with guaranteed minimum work clauses are unlikely to be disrupted.
However, it cautioned that there is no assurance such provisions will be retained when the contracts come up for renewal, raising the risk of renegotiations.
“As a prominent local player in production enhancement and well intervention services, Uzma has seen a surge in enquiries as operators seek to enhance energy security. However, this may be offset by the risk of revenue disruption from contracts that could be affected by the formation of the Eni-PETRONAS joint venture Searah, announced in early June 2026.”
Still, analysts remain upbeat on the O&G services provider’s prospects, supported by its sizeable order book and a growing pipeline of potential contract awards.
Kenanga Research said its order book remains robust at RM4.1bil, mainly comprising well services contracts that provide earnings visibility for the next 2.5 years.
It noted that the group’s contract win momentum has been steadily gaining traction, with Uzma securing a hattrick of contract awards in April 2026, primarily within the well services segment.
Kenanga Research said its solar segment is performing well, with the group eyeing upcoming Large Scale Solar 6 projects, particularly those integrated with battery energy storage systems, where the economics are viable.
The group has also secured Malaysia’s National Remote Sensing Satellite Development Programme under its digital business, although the research house views the contract more as a longer-term growth opportunity that has yet to be factored into forecasts.
