KUALA LUMPUR, 29 August 2025 – Steel Hawk Berhad (stock code: 0320) has taken a major step in diversifying its business portfolio, moving beyond its traditional oil and gas (O&G) base into the utilities and power infrastructure sector. The Group, through its subsidiary Steel Hawk Engineering Sdn Bhd (SHESB), has entered into a collaboration with Ibrahim & Sons Engineering Sdn Bhd (IBSE) to jointly execute subcontract works worth RM92.7 million for Tenaga Nasional Berhad (TNB).
The scope of work includes the installation, testing, and commissioning of 11kV and 33kV underground XLPE aluminium power cables and accessories. The contracts form part of three Letters of Intent awarded by TNB to IBSE, with SHESB supporting manpower and working capital, while IBSE assumes the lead contractor role.
Expansion Beyond O&G
Deputy Chairman and Executive Director Dato’ Sharman K. Michael described the project as a milestone in Steel Hawk’s transformation.
“By expanding our EPCC (Engineering, Procurement, Construction and Commissioning) capabilities beyond O&G into electrical infrastructure, we are diversifying our earnings base, reducing reliance on a single sector, and aligning with long-term national infrastructure spending,” he said.
Steel Hawk is also eyeing new opportunities across utilities, power, industrial manufacturing, healthcare, defence, telecommunications, and large-scale commercial projects. The Group is actively tendering for EPCC contracts and registering as a vendor with multiple corporations.
Financial Performance and O&G Pipeline
While broadening its business scope, Steel Hawk continues to strengthen its O&G operations. In less than a year, it secured eight new contracts, including five packages under PETRONAS’ Construction and Modification Work (CMW) contracts covering downstream facilities nationwide.
To support its growing project pipeline, the Group is reallocating RM7.0 million of IPO proceeds, initially earmarked for its Proposed Teluk Kalung Facility 2, towards working capital for greater deployment flexibility.
For the second quarter ended 30 June 2025 (2QFY25), Steel Hawk posted revenue of RM11.8 million, down from RM19.3 million in 2QFY24, while net profit eased to RM1.1 million from RM3.0 million. The decline was linked to slower work orders and deferred activities from PETRONAS as the national oil company adjusted its operating expenditure.
However, on a half-year basis, the Group delivered strong growth. For 1HFY25, revenue surged 64.9% year-on-year to RM64.3 million, while net profit climbed 48.4% to RM9.2 million, driven by robust EPCC contributions and new contract wins.
Strategic Outlook
Dato’ Sharman noted that Steel Hawk’s 14 active contracts as at end-July 2025 provide stability despite the PETRONAS slowdown. Cost rationalisation, resource reallocation, and spending controls are expected to improve financial resilience in the coming quarters.
He emphasised that the diversification into the “Expanded EPCC Segment” – beginning with TNB’s electrical infrastructure project – marks the start of a broader strategy to capture opportunities across utilities, transportation, industrial, and commercial developments.
“These initiatives, combined with our resilient O&G base, will diversify Steel Hawk’s revenue streams and strengthen our platform for long-term sustainable growth,” he added.
The diversification plans and variation in IPO proceeds allocation will be tabled for shareholders’ approval at an upcoming Extraordinary General Meeting (EGM).
