This article first appeared in The Edge Malaysia Weekly on August 17, 2026 - August 23, 2026

Diversification has been elusive for many oil and gas (O&G) companies that have ventured into adjacent sectors, such as renewable energy and technology. Uzma Bhd (KL:UZMA) is among the few that have made it work.

In fact, its green-energy ventures have been complementing its core O&G operations to deliver record earnings for Uzma for two consecutive years, culminating in a triumphant return for the company to The Edge Malaysia Centurion Club Corporate Awards this year after last being featured in the inaugural 2019 edition.

It recorded its highest-ever net profit in the financial year ended June 30, 2025 (FY2025), when earnings came in at RM53.62 million, up from its previous peak of RM50.08 million in FY2024. The increase in bottom line came as revenue surged to RM716.65 million from RM600.35 million.

Indeed, after the group returned to the black in FY2022 with a net profit of RM5 million, Uzma’s bottom line climbed each subsequent year to reach RM53.62 million by FY2025 — a more than 10-fold increase. This translates into a three-year compound annual growth rate of 59.9% — based on the Centurion Club awards methodology. This peer-topping performance resulted in the company clinching the award for Highest Growth in Profit After Tax Over Three Years in the energy sector.

Uzma’s diversification into the solar sector started in 2021 amid a volatile oil-price backdrop, when it became both a contractor and an asset owner. Its solar portfolio has since grown to more than 170MW, boosted by the commissioning of its own 50MW large-scale solar farm in Kuala Kedah in 2024.

The fast-growing solar division contributed to more than RM26 million in profit after tax for the company in FY2024, and nearly RM10 million in FY2025 before eliminations, representing more than 12% of the company’s total earnings.

In 2025, Uzma ventured further afield by launching an imaging satellite into space to capture high-resolution multispectral images for surface monitoring and analysis. While earnings from the sale of such images remain modest, managing director and group CEO Datuk Kamarul Redzuan Muhamed described the foray as “strategically significant” in an interview with The Edge TV in May.

“We are building this for the future,” he said, adding that infrastructure developers and city planners are beginning to recognise how space-derived data can support better decisions, including predicting sinkholes, monitoring floods and deforestation, and agriculture solutions.

This latest venture helped Uzma secure the Remote Sensing Satellite Project from the Malaysian government, which will give Putrajaya access to sovereign satellite imagery that would otherwise have to be purchased from third parties. Uzma is now finalising an eight-year concession agreement with the government.

In the midst of all these developments, its core O&G services business continues to grow, supported by stronger upstream activity in Malaysia and improved operations.

Best known for its end-to-end well solutions, Uzma provides services ranging from well intervention and stimulation — techniques used to revive and boost production in ageing wells — to enhanced recovery of hard-to-reach reserves as well as the safe abandonment and plugging of depleted wells.

Through Setegap Ventures Petroleum Sdn Bhd, it operates the country’s largest coiled-tubing fleet — essentially massive spools of continuous piping fed into wells for cleaning and repairs — while Malaysian Energy Chemicals & Services Sdn Bhd supplies oilfield chemicals.

Tensions in the Middle East have delayed some of Uzma’s contracts in the region this year, but this has been offset by rising demand for production-enhancement services in its other markets, including Malaysia, Thailand and Indonesia.

Overall, Uzma has successfully diversified into businesses with recurring income and growth potential, while taking advantage of upswings in its core O&G business.

Its valuation remains subdued, however, about four times trailing earnings, in line with the broader O&G services sector.

The immediate priorities are to execute its RM4 billion order book, pursue further growth opportunities and reassess its capital structure, including reducing finance costs that currently amount to about RM40 million a year.

Early signs are encouraging. Uzma’s net gearing, which reached about 100% during its recent expansion, has begun to retreat after rising for two consecutive years, while earnings for the nine months ended March 31, 2026 (9MFY2026), indicate that the group is set for another record year.

Uzma’s 9MFY2026 revenue soared 78.5% year on year to a record high of RM914.44 million from RM512.18 million in 9MFY2025, as O&G segment contribution jumped, pushing net profit up 9.9% to RM36.99 million from RM33.66 million. The full-year performance, Kamarul said, will beat last year’s numbers by “a big margin”.

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