Oil and gas services and equipment provider, Steel Hawk Berhad (stock code: 0320) and its subsidiaries (“Steel Hawk” or the “Group”) is optimistic about its prospects beyond the oil and gas sector after securing shareholders’ approval at an Extraordinary General Meeting (“EGM”) held today for its diversification into the Expanded Engineering, Procurement, Construction and Commissioning (“Expanded EPCC”) Segment (“Proposed Diversification”).
The Proposed Diversification represents a strategic expansion of Steel Hawk’s existing business into the Expanded EPCC Segment, enabling the Group to leverage on its engineering and project delivery strengths beyond the oil and gas (“O&G”) sector. This positions the Group to capture opportunities in high-potential sectors, including amongst others, utilities and power, industrial manufacturing, healthcare, defence, telecommunications, and large-scale commercial projects.
With shareholders’ approval secured, Steel Hawk is poised to broaden its earnings base, reduce reliance on the O&G sector, and build a more resilient business model that will sustain long-term growth and capture new opportunities in Malaysia’s expanding infrastructure and energy development landscape.
Malaysia’s utilities and infrastructure sectors are experiencing robust growth, supported by sustained energy demand, large-scale renewable initiatives such as the upcoming LSS 6 solar programme, which is projected to generate around RM18 billion in EPCC opportunities for industry players, and the rapid development of data centres across the country. This positive industry outlook reinforces Steel Hawk’s decision to expand into the Expanded EPCC Segment, positioning the Group to participate in the next wave of energy, infrastructure, and digital development projects nationwide.
Commenting on the outcome, Dato’ Sharman K. Michael, Deputy Chairman and Executive Director of Steel Hawk, said “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. Diversifying into areas such as utilities and power, transportation, and public infrastructure will not only broaden our revenue base but also enhance long-term business resilience.”
Steel Hawk’s diversification will be anchored by its first venture outside the O&G segment, a Collaboration Agreement with Ibrahim & Sons Engineering Sdn Bhd (“IBSE”) to jointly undertake subcontract works for TNB involving the installation, testing and commissioning of 11kV and 33kV underground aluminium cross-linked polyethylene (“XLPE”) power cables and accessories, with a combined contract value of approximately RM92.66 million.
In addition, the Group has secured eight contracts from Sega Elektrik Sdn. Bhd. (“Sega”), as subcontractor for the installation, testing and commissioning of 415 voltage or below underground cables, overhead system, jointing & termination and accessories for TNB’s asset development distribution network. These contracts, cumulatively valued at RM61.0 million, have commenced on 23 October 2025 and will run for one year.
Riding on this strong momentum, the Group is expanding its reach by actively engaging with multinational corporations (“MNCs”), government-linked companies (“GLCs”) and government-linked investment companies (“GLICs”) across various sectors to register as a potential vendor and/or contractor. These efforts are expected to create a robust project pipeline that will accelerate the growth of the Expanded EPCC Segment and position it as a significant revenue contributor.
“The Board believes these developments will enhance Steel Hawk’s earnings visibility and reinforce our position as a reliable engineering partner in Malaysia’s conventional energy, and infrastructure sectors. This diversification lays the groundwork for sustainable value creation and long-term shareholder returns as we expand into new markets,” he concluded.
In addition, shareholders approved the proposed variation in the utilisation of proceeds from the Initial Public Offering (“IPO”), which involves reallocating RM7.0 million, initially designated for the construction of the Proposed Teluk Kalung Facility 2, towards the Group’s working capital. This strategic reallocation will enhance Steel Hawk’s liquidity and flexibility to fund ongoing and recently secured projects, including the Remote Operations and Splash Zone contracts for PETRONAS Carigali Sdn Bhd, the scaffolding services project for EPOMS Sdn Bhd, the construction & modification works for Petroliam Nasional Berhad (“PETRONAS”) and 27 of its downstream operating plant units, and the TNB subcontract works under the IBSE collaboration.
Shareholders also approved a proposed special issue of up to 70,000,000 new ordinary shares in Steel Hawk to be placed with Bumiputera investors to be identified and approved by the Ministry of Investment, Trade and Industry (“MITI”). This represents approximately 12.50% of the enlarged share capital of the Group. The proposed special issue aims to raise funds for the repayment of bank borrowings, general working capital, and defrayment of estimated expenses associated with the issuance. This will also enable the Group to comply with the Bumiputera Equity Condition imposed by MITI in conjunction with Steel Hawk’s listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). Under this condition, the Group is required to allocate at least 12.50% of its enlarged issued share capital to Bumiputera investors approved by MITI within one year after achieving the profit requirements for listing on the Main Market of Bursa Securities, or within five years after its ACE Market listing, whichever is earlier.
