KUALA LUMPUR (Nov 29): Steel Hawk Bhd (KL:HAWK), an oil and gas services provider listed on the ACE Market on Sept 5, has secured five packages to provide construction and modification works for Petroliam Nasional Bhd (Petronas) and 27 of the national oil company’s downstream operating plant units.
Steel Hawk, whose share price gained nearly 30% over recent weeks, said in a statement on Friday that the contracts were awarded to its wholly owned unit Steel Hawk Engineering Sdn Bhd.
The 27 companies include Asean Bintulu Fertilizer Sdn Bhd, Kertih Port Sdn Bhd, Malaysia LNG Sdn Bhd, Malaysian Refining Company Sdn Bhd, Pengerang Gas Solutions Sdn Bhd, and Pengerang LNG (Two) Sdn Bhd.
The contracts also include works for Petronas Chemicals Group Bhd (KL:PCHEM) plants as well as listed entities Petronas Dagangan Bhd (KL:PETDAG) and Petronas Gas Bhd (KL:PETGAS).
All the contracts are for a three-year tenure, with an option to extend for an additional two years (one year at a time).
The five work packages cover key regions, comprising Package A (East Coast region), Package B (West Coast region), Package C (Southern region), Package D (Sarawak) and Package E (Sabah).
“This is a landmark achievement for Steel Hawk and is expected to have a significant impact on our financial performance over the next five years or so,” Steel Hawk deputy chairman and executive director Datuk Sharman K Michael said.
“While the quantum of the contracts is still not confirmed as it is on a call-out basis, we are confident it will strongly enhance our bottom line,” Sharman said.
He noted that these contracts were also the largest the company had secured since its inception, both in scale and geographic reach, expanding its existing portfolio of 14 contracts.
“We are equally excited and honoured as these contracts will create at least 45 new job opportunities of various engineering disciplines across all regions and benefit more subcontractors and services providers to Steel Hawk’s procurement ecosystem,” he said.
While the company is still weighing its funding options for the project, Sharman said this should not be an issue given its recent strong performance.
Steel Hawk, first listed on the LEAP Market in October 2021, had cash and cash equivalents of RM12.70 million and pledged deposits of RM4.64 million as of Sept 30, 2024.
The company also recorded retained earnings of RM25.66 million. Under liabilities, Steel Hawk had long-term borrowings of RM3.19 million and short-term debt commitments of RM22.74 million.
At 2.59pm on Friday, shares of Steel Hawk were 2.5 sen or 5.38% lower at 44 sen, valuing the company at RM229.39 million.