KUALA LUMPUR (Sept 17): Uzma Bhd (KL:UZMA) has entered into strategic agreements with Finnish space technology start-up ReOrbit in relation to a geostationary earth orbit (GEO) communications satellite project.

These will see ReOrbit and Uzma provide a software enabled state-of-the-art GEO communications satellite to bring connectivity and ensure consistent coverage across Malaysia, Uzma said in a bourse filing.

Uzma group CEO Datuk Kamarul Redzuan Muhamed said the venture will unlock new opportunities and create a sustainable future for the group in the new space economy.

“Satellites and new space technologies are revolutionising the way we connect, observe and understand our world,” said Kamarul in a statement announcing the partnership.

Uzma did not reveal the details of the partnership between the group and ReOrbit.

This is not Uzma’s first GEO communications satellite venture. In December 2023, the group announced a collaboration with Satellogic Inc, a US company listed on the Nasdaq, which saw Satellogic design and manufacture Uzma’s first earth observation satellite called “UzmaSAT-1”.

UzmaSAT-1 is expected to be launched into space aboard SpaceX’s Falcon 9 rocket in October.

Uzma previously said that it intends to diversify its revenue base away from a heavy reliance on oil and gas (O&G) through observation satellite operations.

In the next five years, the company is aiming for a 60:40 revenue split between its core O&G and non-core O&G businesses.

Uzma’s non-core businesses currently contribute 27% to the company’s total revenue, according to Kamarul.

Meanwhile, ReOrbit founder and CEO Sethu Saveda Suvanam said in the statement that the partnership solidifies the firm’s collaboration with Uzma in unlocking connectivity in Malaysia.

“As a leader in cutting-edge GEO communications satellites, ReOrbit is happy to work alongside Uzma to map out ways our satellite technology, extensive in-house knowledge and expertise can support the booming economy and benefit the people in Malaysia,” said Sethu.

Back in June, Uzma said it had entered into an expression of interest (EOI) with ReOrbit to explore the utilisation of a satellite assembly, integration and test facility in Malaysia as well as the launching of a satellite.

It was previously said that the two companies would also jointly identify marketing and distribution opportunities of ReOrbit’s space satellite solutions in Southeast Asia on an exclusive basis to Uzma, subject to the parties agreeing on the exclusivity terms and conditions.

Uzma’s shares closed up one sen or 1.1% to 95 sen on Tuesday, giving it a market capitalisation of RM413.6 million. Uzma’s share price is up 26.6% year to date.