KUALA LUMPUR (Aug 13): Uzma Bhd (KL:UZMA) will be launching its “multi-million US dollar” earth observation satellite, UzmaSAT-1, in a bid to diversify its non-oil & gas (O&G) revenue base, said Uzma group chief executive officer Datuk Kamarul Redzuan Muhamed.
UzmaSAT-1, expected to launch in October, is developed in partnership with Nasdaq-listed Satellogic Inc. Its function is to provide satellite imagery capabilities and geospatial services across Southeast Asia.
Uzma will be the first commercial player to operate the observation satellite in Malaysia.
“We already have a few clients [in digital earth], but they are very small at the moment. We target for significant change and growth [in this segment] with the launch of our satellite,” said Kamarul at the press conference held in conjunction with UzmaSAT-1 Tech Day 2024.
“We are confident that UzmaSAT-1 will revolutionise geospatial data analysis and open up new frontiers for industries across the region,” Kamarul added.
The observation satellite, which will have a lifespan of three to five years, will be housed under the digital earth segment — a new segment from which Uzma expects revenue contribution as soon as the financial year of 2025 (FY2025).
“Oil and gas will still be significant contributors to Uzma — but the five-year plan is to diversify our income — mainly because our core business, O&G, is very cyclical, and we must be able to offset that cyclical nature by forming this non-O&G business,” said Kamarul.
The company aims for a 60:40 revenue split between its core and non-core businesses in the next five years. Uzma’s non-core businesses currently contribute 27% to the company’s total revenue, according to Kamarul.
Shares of Uzma settled down two sen or 1.94% to RM1.01 on Tuesday, valuing the group at RM439.68 million.
The stock has climbed nearly 35% year to date, amid renewed interest in the O&G industry given the strong Brent crude prices that surpassed US$90 per barrel this year.