KUALA LUMPUR: Oil and gas services and equipment provider Steel Hawk Bhd is optimistic about the future of the oil and gas (O&G) industry, expecting it to remain strong for the next 50 years.
However, deputy chairman and executive director Datuk Sharman K. Michael said the nature of its business is such that operations are not materially affected by crude oil and gas production and price fluctuations.
“Coupled with our long-term contracts, we will be able to generate sustainable revenue,” he said at a press conference on Friday after the launch of Steel Hawk’s prospectus in conjunction with its transfer of listing from the LEAP Market of Bursa Malaysia to the ACE Market.
Steel Hawk aims to raise RM13.5 million through the transfer, which is scheduled for Sept 5.
Steel Hawk is involved in providing onshore and offshore support services for the O&G industry, with core capabilities in engineering, procurement, construction and commissioning (EPCC) services, maintenance of topside O&G facilities, installation and maintenance of oilfield equipment, and supply of oilfield equipment.
Steel Hawk serves clients within the upstream, midstream, and downstream sectors of the O&G value chain.
Sharman said the listing transfer will provide access to a wider fundraising platform to support its expansion plans and accelerate long-term growth initiatives.
“The outlook for Malaysia’s O&G industry is positive, and Steel Hawk is well-positioned to make the most of the opportunities ahead.
“We anticipate a surge in potential contracts, which will enable us to expand our market share and drive improved financial performance. Our ongoing efforts to enhance our capabilities will solidify our position as a leading player in the industry.”
Of the RM13.5 million to be raised from the transfer of listing, RM7 million (51.85%) will be utilised to expand overall fabrication capacity fivefold, from about 13 tonnes to about 65 tonnes a month, by constructing an additional fabrication yard in Kemaman, Terengganu (Teluk Kalung Facility 2).
“Teluk Kalung Facility 2 will allow us to overcome space constraints, where we were previously unable to fabricate structures exceeding six metres in length, thus reducing our reliance on subcontractors for fabrication work.
“In turn, we will be able to optimise the turnaround time of our EPCC services and achieve more cost savings. With the new facility, we will undertake more fabrication activities as well as blasting and painting works, among others,” Sharman said.
He added that Steel Hawk aims to expand its EPCC and facilities improvement/maintenance services to the renewable energy industry, specifically in solar energy infrastructure and hydroelectric power. Additionally, it plans to provide integrated hookup and commissioning (HUC) services to interconnect O&G infrastructure.
“Onshore HUC services would involve fabrication services, assembly, system integration, and precommissioning of components and systems, whereas offshore HUC services would involve transportation and installation (T&I), installing fabricated components, hook-up services, and startup commissioning.”
Sharman said RM2 million (14.81%) of the proceeds will be used to finance working capital by purchasing raw materials such as piping, fittings and structures. “Additionally, we will allocate RM1 million (7.41%) for the repayment of bank borrowings, while the remaining RM3.50 million (25.93%) will be used to cover the transfer of listing expenses.”
UOB Kay Hian Securities (M) Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for Steel Hawk’s transfer of listing.
