KUALA LUMPUR (May 14): Oil and gas (O&G) services provider Steel Hawk Bhd (KL:HAWK) is confident of further growth after its first quarter net profit more than doubled year on year, driven by stronger revenue as it received new work orders from Petroliam Nasional Bhd (Petronas) from recently awarded contracts.

Its net profit for the first quarter ended March 31, 2025 (1QFY2025) jumped to RM8.17 million from RM3.23 million in 1QFY2024, as revenue surged to RM52.48 million from RM19.74 million, its Wednesday bourse filing showed. No dividend was declared for the quarter under review.

The bottom-line earnings improvement reflects enhanced project execution and efficient cost management, driven by the higher volume of engineering, procurement, construction and commissioning, or EPCC, activities during the quarter under review, with the new work orders from Petronas.

The EPCC division alone contributed RM50.58 million or 96.4% of the quarter's total revenue. There were also no expenses incurred in relation to the group's transfer from the LEAP Market to the ACE Market, which was completed on Sept 5 last year, Steel Hawk said.

The group said it is experiencing robust growth that it expects to continue, supported by a solid track record and its recent contract wins, as well as favourable industry developments, citing Petronas' commitment to energy security and sustainable growth as outlined in its Activity Outlook 2025-2027 report.

"The awarded contracts reflect the group’s growing recognition in the oil and gas industry and its ability to deliver comprehensive, high-value services across upstream, midstream, and downstream operations. As an operational expenditure contractor, the group is strategically positioned to support the ongoing maintenance and safe operation of critical oil and gas infrastructure, and is less impacted by the fluctuations in oil prices," it added.

As of March 31, the group manages 13 active call-out contracts, including five secured from its transition to the ACE Market last September, which it said provides "steady revenue visibility over the next four years".

These five packages to provide construction and modification works for Petronas and its 27 downstream operating plant units, secured last November, make up its "largest" to-date job, said Steel Hawk, though no value was provided when it announced the projects. All the packages are for a three-year tenure, with an option to extend for an additional two years, a year at a time.

Steel Hawk shares were up 1.5 sen or 3% at 52 sen at Wednesday’s close, giving it a market capitalisation of RM254.8 million. Year to date, the stock has gained 14.29%.