Oil and gas services and equipment provider Steel Hawk Bhd, through its wholly-owned subsidiary Steel Hawk Engineering Sdn Bhd, has bagged construction and modification works (CMW) from Petroliam Nasional Berhad (Petronas) and 27 of its downstream operating plant units (OPU) that could bring revenue stream for the next five years, according to a press release circulated by the company on Nov 29.
"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," he said when commenting on the maiden CMW contracts that have highlighted Steel Hawk's technical expertise and have added to Steel Hawk's existing portfolio of 14 contracts creating at least 45 new job opportunities of various engineering disciplines.
In a Bursa filing, Steel Hawk reported that the third quarter revenue for 2024 amounted to nearly RM21.0 million1 which represented a growth of 13.94% year-on-year (YoY) from over RM18.4 million2 recorded in the corresponding quarter in FY2023. The quarterly net profit grew by 72.00% YoY to nearly RM2.85 million3 from over RM1.65 million4 in the previous year. Earnings per share (EPS) for the quarter under review amounted to 0.58 sen, compared to 0.34 sen last year.
For the nine months ended 30 September 2024, Steel Hawk registered a net profit of RM9.08 million on the back of RM60.02 million in revenue, marking an increase of nearly 60% (59.98%) YoY and 18.63% YoY, respectively, from the corresponding period a year ago.
The total assets position for Steel Hawk as at 30 September 2024 stood at nearly RM78.58 million5, which increased 52.02% from the total assets valuation of nearly RM51.69 million6 as at 31 December 2023.
As at 30 September 2024, Steel Hawk had cash and cash equivalents of RM12.70 million7 offset by bank overdraft amounting to nearly RM9.4 million, resulting in a net cash position of nearly RM3.3 million8.
The five CMW packages from Petronas cover key regions including – East Coast Region (Package A), West Coast Region (Package B), Southern Region (Package C), Sarawak (Package D), and Sabah (Package E). Steel Hawk has been appointed for all the five packages.
Steel Hawk recently transferred its listing from Bursa's Leap market to the Ace market in September 2024. "The capital raised from our initial public offering (IPO) in September 2024 has played a crucial role in fast-tracking our expansion plans, particularly within the dynamic and rapidly growing oil and gas sector," said Deputy Chairman and Executive Director Datuk Sharman K Michael.
The Executive Chairman added that funding for the five packages should not be an issue given Steel Hawk's recent strong performance, "We are still weighing our funding options, but we are confident in the support of financial institutions and even our shareholders should the need arise."
The three-year CMW contracts come with an option to extend for an additional two years with a period of one year plus one year, and are likely to have a positive impact on the company. The scope of the contracts include civil, structural and building works, mechanical and piping installation, electrical installations works, instrumentation and control systems, telecommunications, transportation, as well as lifting and logistics services within various segments namely chemical, refinery, gas terminal, tank storage, and regasification.
It is noted that the contracts represent the largest contracts to have been secured by the company since incorporation, both in terms of scale as well as geographical coverage.
- RM20,992,000 ︎
- RM18,423,000 ︎
- RM2,845,000 ︎
- RM1,654,000 ︎
- RM78,574,000 ︎
- RM51,687,000 ︎
- RM12,700,000 ︎
- RM3,262,000 ︎
