KUALA LUMPUR: Oil and gas (O&G) services and equipment provider Steel Hawk Bhd (SHB) posted a net profit of RM2.84 million for the third quarter (Q3) ended September 30, 2024 (FY24), an increase of 72.02% from RM1.65 million recorded in Q3 FY23.
Revenue for Q3 FY24 rose to RM20.99 million, reflecting a 14.0% year-on-year (YoY) increase from RM18.42 million recorded in Q3 FY23.
The group maintained robust momentum in the nine-month (9M) of FY24, with revenue rising to RM60.02 million, an 18.6% YoY increase from RM50.60 million in 9M of FY23.
Net profit grew to RM9.08 million from RM5.68 million recorded in 9M FY23, reflecting a YoY growth of 59.9%.
This notable improvement was driven by lower costs of sales, achieved through bulk purchases of raw materials and cost savings negotiated with subcontractors for large-scale fabrication and painting work associated with the chemical injection skids project.
SHB incurred listing expenses amounting to RM2.07 million in 9M FY24 as part of its transfer from the LEAP Market to the ACE Market of Bursa Malaysia, a significant increase compared to RM0.41 million in 9M FY23.
SHB deputy chairman and executive director Datuk Sharman K. Michael (pic) said the company’s outlook remains positive.
He said this is further reinforced by the recent wins of 2 new call-out contracts, solidifying our position as a trusted partner in the O&G sector.
On Sept 11, 2024, SHB secured a 3-year contract from Petronas Gas Bhd (PGB) to provide operational pigging supplies and services.
Additionally, on Oct 18, 2024, the company bagged a 3-year contract to provide an offshore living quarter
maintenance and repair services for EPOMS offshore facilities in Sarawak.
“Petroliam Nasional Bhd’s increased focus on growth and expansion, highlighted by a 20.1% increase in capital expenditure (capex) to RM25.7 billion in the first half (1H) of 2024 compared to RM21.4 billion in 1H 2023, bodes well for the O&G sector.
“This significant investment, coupled with Petronas’ targeted capex of RM50.0-RM60.0 billion for 2024, creates a promising pipeline of projects.
“We are confident in our ability to capitalise on these opportunities and contribute to the sector’s growth,“ he said.
SHB, in a Bursa Malaysia filing, said Petronas is expected to continue investing in core business activities and growth projects in its effort to support and contribute to the resiliency of the O&G services and equipment (OGSE) industry.
Additionally, the recent discovery of potential hydrocarbon reserves in the Langkasuka Basin present further opportunities for the future
exploration and development, potentially contributing to the industry’s long-term sustainability, it said.
Sharman said the company’s outlook remains positive, further reinforced by the recent wins of 2 new call-out contracts, solidifying our position as a trusted partner in the O&G sector.
