Uzma Completes Acquisition of Johnson Pump to Enhance Downstream O&G Services and Earnings Growth
Uzma has acquired Johnson Pump (M) Sdn Bhd and Johnson Pump Oil & Gas (M) Sdn Bhd for RM33.2 million, enhancing its downstream oil and gas services. The acquisition is projected to contribute RM5 million annually to Uzma's earnings, increasing the target price to RM1.10. With a strong outlook for plug-and-abandonment activities and seismic vessel contracts, Uzma's tender book amounts to RM2.6 billion, indicating robust growth potential.
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Uzma completed the acquisition of Johnson Pump (M) Sdn Bhd and Johnson Pump Oil & Gas (M) Sdn Bhd on December 31, 2025, for RM33.2 million, funded by borrowing. This acquisition expands Uzma's downstream oil and gas services and is expected to add RM5 million to annual earnings, representing a 4-7% uplift to FY26-28 forecasts.
Uzma's tender book is RM2.6 billion, with 58% in O&G. The company anticipates strong earnings growth, driven by increased plug-and-abandonment activities, with 70 wells scheduled for 2026. The target price is raised to RM1.10, reflecting strong earnings momentum post-acquisition.
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