Uzma Bhd is expected to face short-term earnings challenges stemming from disruptions in upstream maintenance activities linked to the ongoing restructuring of PETRONAS Carigali’s assets, although operations are gradually resuming. The restructuring includes the establishment of Searah, a joint venture between Italian energy firm Eni and Malaysia’s Petroliam Nasional Bhd (PETRONAS), alongside the transfer of select assets to EnQuest Petroleum Production Malaysia Ltd and Vestigo Petroleum Sdn Bhd.
Research by UOB Kay Hian (UOBKH) indicates that upstream maintenance contracts experienced a period of suspension between July and August 2026, with activities beginning to pick up in September. The formation of Searah is anticipated to bring changes in how oil and gas service providers interact with operators, potentially shifting away from the traditional contractor-principal framework toward models that emphasize capital provision and active coordination.
Uzma has initiated early discussions with relevant operators to safeguard its existing contracts and ensure readiness for mobilization as work resumes. Despite near-term challenges, UOBKH highlights Uzma’s expanding non-oil and gas (non-O&G) portfolio as a key growth driver. The company’s non-O&G bidbook jumped to RM3.8 billion in June 2026, nearly quadrupling from the previous quarter, fueled by opportunities in energy trading, renewable energy projects, and its digital earth venture.
In energy trading, Uzma is pursuing third-party access natural gas contracts that could unlock pipeline capacity valued at up to RM10 billion for the market. The company is also competing for three large-scale solar tender packages under the Renewable Energy sector, with particular focus on Package 2—a 300-megawatt solar project coupled with 150 megawatts of Battery Energy Storage System designated as a bumiputra open tender. In its digital earth segment, Uzma is reportedly nearing the final stages of negotiations for a national satellite concession.
The research firm acknowledges that the near-term downside risks appear to be largely priced into Uzma’s current share value. While maintaining a “buy” recommendation, UOBKH revised its target price downward to RM0.70 from RM0.76, based on an unchanged eight times price-to-earnings multiple.
Uzma’s longer-term outlook remains positive, supported by its diversified energy and technology assets, which include offshore water injection facilities such as Marsya, commissioned in 2016, and Sara, designed to enhance oil recovery from offshore fields. The company’s flagship 50-megawatt large-scale solar project in Kedah, along with its asset-light operational model, positions it well to capitalize on emerging opportunities linked to the formation of Searah and the evolving upstream landscape.