UZMA BERHAD’s Q3 FY2025: Strong Revenue Growth Amidst Shifting Market Dynamics
Greetings, fellow investors and market enthusiasts! Today, we’re diving deep into the latest financial performance of UZMA BERHAD, a key player in Malaysia’s energy sector. The company has just released its unaudited consolidated financial results for the third quarter ended 31 March 2025, and there’s plenty to unpack.
The report paints a picture of robust top-line growth, with impressive increases in revenue both for the quarter and the nine-month period. This expansion is largely fueled by heightened activities in their core Oil & Gas (O&G) and burgeoning New Energy segments. However, a closer look reveals some interesting shifts in profitability, particularly when comparing the current quarter to the preceding one, due to elevated administrative and operating costs. Despite these nuances, UZMA BERHAD continues to demonstrate its commitment to shareholders, as evidenced by its dividend announcement.
Let’s break down the numbers and strategic moves that are shaping UZMA BERHAD’s trajectory.
Core Data Highlights: A Closer Look at the Numbers
UZMA BERHAD has delivered a strong performance on the revenue front, reflecting increased operational activities. Here’s how the key financial indicators stack up:
Quarterly Performance (Q3 FY2025 vs. Q3 FY2024)
Current Quarter (Q3 FY2025)
Revenue: RM168.7 million
Gross Profit: RM70.5 million
Profit Before Taxation (PBT): RM14.9 million
Profit After Taxation (PAT) Attributable to Owners: RM10.6 million
Basic Earnings Per Share (EPS): 2.44 sen
Corresponding Quarter (Q3 FY2024)
Revenue: RM106.7 million
Gross Profit: RM37.3 million
Profit Before Taxation (PBT): RM4.7 million
Profit After Taxation (PAT) Attributable to Owners: RM9.9 million
Basic Earnings Per Share (EPS): 2.57 sen
The Group’s revenue for the current quarter surged by RM62 million, or 58.1%, to RM168.7 million compared to the corresponding quarter last year. This significant increase was primarily driven by higher activities in the Oil & Gas segment, particularly the Well Services Division, and the New Energy segment, benefiting from the energization of LSS4 and Engineering, Procurement, Construction and Commissioning (EPCC) projects. This top-line growth translated into a remarkable 89.0% increase in gross profit, leading to a substantial 215.7% rise in Profit Before Taxation.
Interestingly, despite the robust PBT growth, the Basic EPS saw a slight decrease from 2.57 sen to 2.44 sen, which could be attributed to changes in the weighted average number of ordinary shares in issue during the period.
Year-to-Date Performance (9 Months FY2025 vs. 9 Months FY2024)
Current Period (9 Months FY2025)
Revenue: RM512.2 million
Gross Profit: RM184.8 million
Profit Before Taxation (PBT): RM42.4 million
Profit After Taxation (PAT) Attributable to Owners: RM33.7 million
Basic Earnings Per Share (EPS): 7.70 sen
Corresponding Period (9 Months FY2024)
Revenue: RM395.8 million
Gross Profit: RM161.1 million
Profit Before Taxation (PBT): RM41.1 million
Profit After Taxation (PAT) Attributable to Owners: RM34.5 million
Basic Earnings Per Share (EPS): 8.91 sen
For the nine-month period, UZMA BERHAD’s revenue expanded by RM116.4 million, or 29.4%, reaching RM512.2 million. This was primarily driven by continued strong activities in the O&G segment and contributions from the New Energy segment. Profit Before Taxation saw a modest increase of 3.0% to RM42.4 million, which was partially offset by increased administrative and operating expenditures during the period.
Current Quarter vs. Preceding Quarter (Q3 FY2025 vs. Q2 FY2025)
Current Quarter (Q3 FY2025)
Revenue: RM168.7 million
Gross Profit: RM70.5 million
Profit Before Taxation (PBT): RM14.9 million
Preceding Quarter (Q2 FY2025)
Revenue: RM135.6 million
Gross Profit: RM63.7 million
Profit Before Taxation (PBT): RM16.6 million
Comparing the current quarter to the immediate preceding quarter, revenue increased by 24.4%, and gross profit rose by 10.5%. However, Profit Before Taxation saw a 10.5% decrease. This was mainly due to higher administrative and operating costs incurred in the current quarter, indicating cost pressures that need to be managed despite revenue growth.
Segmental Performance Overview
A breakdown of the Group’s performance by business segment reveals the drivers behind the overall results:
Current Quarter (Q3 FY2025) vs. Corresponding Quarter (Q3 FY2024)
Segment | Q3 FY2025 Revenue (RM’000) | Q3 FY2024 Revenue (RM’000) | Revenue Change (%) | Q3 FY2025 Operating Profit (RM’000) | Q3 FY2024 Operating Profit (RM’000) | Operating Profit Change (%) |
---|---|---|---|---|---|---|
Upstream O&G Services | 147,249 | 94,382 | 56.0 | 23,488 | 10,989 | 113.7 |
Trading | 4,325 | 24,126 | (82.1) | 393 | 821 | (52.1) |
New Energy | 18,517 | 215 | 8,512.6 | 2,262 | (128) | (1,867.2) |
Digitalisation & Technology | 764 | 143 | 100.0 | 141 | (90) | (256.7) |
The Upstream O&G Services segment continues to be the primary revenue driver, showing significant growth in both revenue and operating profit. The New Energy segment demonstrates explosive growth, albeit from a low base, highlighting its increasing contribution. The Trading segment, however, faced a substantial decline in both revenue and operating profit.
Financial Health: Balance Sheet and Cash Flow
As at 31 March 2025, UZMA BERHAD’s financial position shows some notable changes compared to 30 June 2024:
As at 31 March 2025
Total Assets: RM1,780.8 million
Total Equity: RM646.0 million
Total Liabilities: RM1,134.9 million
Net Asset Per Share: RM1.43
Total Borrowings: RM845.2 million (Short-term: RM302.8M, Long-term: RM542.4M)
As at 30 June 2024
Total Assets: RM1,516.1 million
Total Equity: RM644.9 million
Total Liabilities: RM871.3 million
Net Asset Per Share: RM1.58
Total Borrowings: RM618.1 million (Short-term: RM267.6M, Long-term: RM350.4M)
Total assets increased significantly, mainly due to a substantial rise in Property, Plant and Equipment. Total liabilities also saw a considerable increase, primarily driven by higher borrowings. This has led to a slight decrease in Net Asset Per Share. The Group’s cash and cash equivalents at the end of the period stood at RM12.4 million, down from RM82.3 million in the corresponding period last year, reflecting significant investments in property, plant, and equipment (RM286.1 million for 9 months FY2025).
Navigating Risks and Seizing Prospects
UZMA BERHAD’s outlook is a blend of opportunities and challenges, deeply intertwined with global and local industry trends.
Upstream O&G Services Segment
The global oil market remains volatile, with Brent crude prices declining to around USD 64 per barrel as of late May 2025. Factors like OPEC+ production increases, rising U.S. crude inventories, and global economic concerns have dampened demand expectations, muting the impact of geopolitical tensions. This suggests a cautious near-term outlook for oil prices.
However, within Malaysia, the upstream sector remains robust, supported by PETRONAS’s Activity Outlook 2025–2027. PETRONAS aims to increase production to 2 million barrels of oil equivalent per day by 2027, with plans for 69 development wells in 2025 and an expected increase in Plug and Abandonment activity. These initiatives create significant opportunities for Oil & Gas Services and Equipment (OGSE) providers like UZMA BERHAD.
In line with these opportunities, UZMA has secured notable contracts, including a 3-year contract from PETRONAS Carigali for Non-Rig Assisted Electric Wireline Logging (EWL) services in East Malaysia, and a 2-year Work Order Award for 2D & 3D marine seismic data acquisition services under the Pan Malaysia Umbrella Contract. The Group remains optimistic about its role in contributing to Malaysia’s energy goals.
Digitalisation & Technology Segment
UZMA BERHAD is making strides in the space economy. Following the successful launch of UzmaSAT-1, the Group is actively onboarding government and commercial users for high-resolution imagery. Their Digital Earth (UzmaDE) platform continues to evolve, supporting dynamic analytics for applications like plantation compliance monitoring and slope integrity risk detection.
A major highlight is the award of the Program Pembangunan Satelit Penderiaan Jauh Negara (PSPJN) by the Malaysian Government, positioning UZMA to lead the development and operation of the country’s next-generation Earth observation satellite. This aligns with Malaysia’s national space policies. Looking ahead, the focus is on expanding regional partnerships and leveraging AI analytics to unlock new value chains in Earth observation across Southeast Asia.
New Energy Segment
The Group holds a highly optimistic view on the opportunities within the renewable energy sector, aligning with Malaysia’s National Energy Transition Roadmap (NETR) which targets 70% renewable energy in the national mix by 2050. Recent updates to the Self-Consumption (SELCO) program, effective January 2025, now allow ground-mounted and floating solar systems and require Battery Energy Storage Systems (BESS), opening new investment avenues for UZMA.
Furthermore, the introduction of the Community Renewable Energy Aggregation Mechanism (CREAM) by PETRA is expected to create new economic opportunities. UZMA has also submitted a proposal for the Large Scale Solar (LSS) Peralihan Tenaga SuRia (LSS PETRA 5+) program, with optimism for a positive outcome.
Dividend Announcement
The Board of Directors declared a first and final dividend with a re-investment plan of RM0.02 per ordinary share for the financial year ended 30 June 2024. This dividend, which saw a net payment of RM5.58 million and reinvestment of 4.21 million shares, reflects the Group’s ongoing commitment to delivering returns to shareholders, consistent with its dividend policy.
Summary and Outlook
UZMA BERHAD’s third-quarter results for FY2025 demonstrate strong operational momentum, particularly in its core Oil & Gas and rapidly expanding New Energy segments. The significant revenue growth underscores the effectiveness of their strategic initiatives and their ability to capitalize on market opportunities, especially within Malaysia’s robust energy transition landscape.
However, the report also highlights increasing cost pressures, as evidenced by the decline in Profit Before Taxation when comparing the current quarter to the preceding one, despite higher revenue. This suggests that while top-line growth is impressive, managing administrative and operating expenses will be crucial for sustained profitability. The increase in overall borrowings also warrants attention, though it appears to be tied to significant capital expenditure aimed at future growth.
The company’s strategic moves in both the traditional O&G sector and the innovative New Energy and Digitalisation & Technology segments position it well for the future. Securing key contracts and actively participating in national initiatives like PSPJN and LSS PETRA 5+ indicate a clear vision for diversification and long-term sustainability.
Key points from this report include:
- Exceptional revenue growth driven by O&G and New Energy segments.
- Strong profit before taxation growth compared to the same quarter last year, but a decrease quarter-on-quarter due to higher operating costs.
- Strategic contract wins and participation in national energy transition and space economy initiatives.
- Increased investments in property, plant and equipment, supporting future growth.
- A continued commitment to shareholder returns through dividends.
As UZMA BERHAD continues to navigate a dynamic energy landscape, its focus on operational efficiency, strategic diversification, and technological advancement will be key to unlocking further value. The company’s proactive stance in embracing new energy and digital frontiers, alongside its established O&G presence, paints an interesting picture for its future.