The oil and gas services company’s deputy chairman and executive director Sharman K Micheal said the expansion is due to demand from potential customers in the RE segment.
Sharman said the company can offer a comprehensive range of services in this segment, positioning itself as a one-stop centre for providing full infrastructure solutions to its customers.
“Some potential customers have approached us. Once they receive a writ from the Sustainable Energy Development Authority Malaysia, they need to find collaborative contractors from different sectors in the industry to complete the construction.
“For example, for hydroelectric projects, you need a consultant to engineer the system using proper design software, scheduling software, and so on.
“Then, you need a civil contractor to handle the civil infrastructure, a mechanical contractor to install the rotating equipment, and an electrical contractor,” he said in a press conference after the company’s listing ceremony.
Sharman said as Steel Hawk has a full-fledged team of engineers from various fields and with extensive experience, he believes the company can serve as the sole contractor for its customers in this segment, in addition to its main business focus on engineering, procurement, construction, and commissioning (EPCC).
Steel Hawk, which debuted on the ACE Market today, saw its share price open at 30 sen, giving a premium of 15 sen over its offer price of 15 sen.
At the opening of trading, a total of 64.88 million shares were traded.
Sharman also noted that Petroliam Nasional Bhd (Petronas) is currently the company’s sole customer in the renewable energy segment.
“Thus, the company is seeking new potential clients to align with its expansion plans in the renewable energy sector,” he said.
Moving forward, Sharman noted that Steel Hawk plans to bid for more solar and hydroelectric jobs, especially in Terengganu, as the state has many rivers with different ranges of power generation capacity, from two to 3.5 megawatts.
Meanwhile, he said from the proceeds raised, the company will construct a new 124,629 sq ft fabrication yard in Kemaman, Terengganu (Teluk Kalung Facility 2).
He noted that its new fabrication yard is five times bigger than its existing yard, which is 23,508 sq ft.
“With this new yard, it will allow us to reduce our reliance on subcontractors to carry out fabrication work, leading to optimising turnaround time for our EPCC services and additional cost savings,” he added.