Steel Hawk Berhad, a prominent oil and gas services provider, has received shareholder approval to diversify into the Expanded Engineering, Procurement, Construction and Commissioning (EPCC) segment. This strategic move, approved at an Extraordinary General Meeting, aims to leverage Steel Hawk’s engineering strengths to explore opportunities in sectors such as utilities, power, and telecommunications.
The diversification is set to broaden Steel Hawk’s earnings base and reduce its reliance on the oil and gas sector. The company plans to capitalise on Malaysia’s growing infrastructure and energy development, including the $3.8b (RM18b) EPCC opportunities from the upcoming LSS 6 solar programme and the rapid development of data centres.
Dato’ Sharman K. Michael, Deputy Chairman and Executive Director of Steel Hawk, stated, “With today’s approvals, the Group is well-positioned to leverage its core engineering strengths to capture opportunities in sectors driven by ongoing infrastructure and energy development.”
Steel Hawk’s first venture outside the oil and gas sector involves a collaboration with Ibrahim & Sons Engineering Sdn Bhd to undertake subcontract works for TNB, valued at $19.5m (RM92.66m). Additionally, the company has secured eight contracts with Sega Elektrik Sdn. Bhd., cumulatively worth $12.8m (RM61m), for TNB’s asset development distribution network.
The company is also reallocating $1.5m (RM7m) from its Initial Public Offering proceeds to enhance working capital, supporting ongoing projects with major clients like PETRONAS. Furthermore, a special issue of up to 70 million new shares will be placed with Bumiputera investors, complying with the Bumiputera Equity Condition set by the Ministry of Investment, Trade and Industry.
These initiatives are expected to enhance Steel Hawk’s earnings visibility and reinforce its position as a reliable engineering partner in Malaysia’s energy and infrastructure sectors.
