Uzma earnings growth set to resume in Q2 FY27
KUALA LUMPUR: Uzma Bhd's earnings growth is expected to resume in the second quarter (Q2) of financial year 2027 (FY27), as seismic vessel utilisation recovers to above 90 per cent following the completion of dry-docking.
KUALA LUMPUR: Analysts anticipate Uzma Bhd's earnings to rebound in the second quarter of FY27 as vessel utilization rises above 90% post-dry-docking. This recovery aligns with a growing upstream oil and gas sector, driven by Petroliam Nasional Bhd's portfolio optimization and operatorship restructuring in Q1. Uzma's earnings could further strengthen from the acquisition of Johnson Pump in Dec 2025 and a Q3 FY26 gas pipeline contract.
Additionally, Uzma's nascent energy business, projected to deliver higher contributions, will bolster growth, with new net energy metering projects. Uzma aims to expand power generation capacity to 150 MW peak in FY27, supported by SARA WIF2.0 commissioning, now 85% complete, expected to start generating in Q3 FY27. The firm notes a surge in tenders, up 81% QoQ to RM5.6 billion as of June, with 67% non-O&G and 33% O&G.
Uzma, a prominent Malaysian solar company, is positioned for Package 2 of Large Scale Solar 6, encompassing 300MW solar and 150MW battery storage. The company also pursues natural gas contracts annually worth RM100 million and an eight-year satellite concession with the Malaysian government. Amid Middle East tensions, heightened energy security concerns are fueling demand for well services projects in Thailand, Vietnam, and Myanmar.
If Uzma secures these contracts, it could benefit FY27 earnings. The analysts keep a "Buy" rating on Uzma with an unchanged target price of 76 sen, viewing the stock as undervalued at three times its estimated FY27 P/E ratio.
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