KUALA LUMPUR: Handal Energy Bhd is proposing to diversify its business to include telecommunications network infrastructure solutions and marine sand segments.
In a filing with Bursa Malaysia, the integrated oil and gas (O&G) services provider said under the telecommunications network infrastructure solutions segment, the company will be owning, operating and leasing out space for telecommunication towers, as well as setting up and integrating 5G private networks.
Moreover, Handal stated it will be involved in extracting, operating and trading for domestic and export sales of marine sand and related business activities, under the marine sand business.
Handal’s core business include integrated O&G inspection, maintenance, repair and overhaul of pipelines and structures, as well as gas turbines and other turbomachinery as an independent third-party non-original equipment manufacturer service provider.
Handal expects the new segments to contribute 25% or more of the net profits of the group moving forward.
This proposal stands to diversify Handal’s earnings base and reduce its dependence on its existing businesses.
Due to the current challenging environment within the O&G industry, the group is also restructuring and consolidating its strength, resources and business strategy, which includes streamlining its O&G business into a single entity.
Handal also noted it intends to capitalise on the potential growth in East Malaysia, especially given the increasing greater autonomy enjoyed by the region.
The marine sand business in particular, is expected to benefit from the increasing construction activity supported by investment in large-scale transport and energy projects, said the company.
On Nov 8, 2022, Handal’s wholly-owned subsidiary, Handal Digital Sdn Bhd, secured a network facilities provider (NFP) licence from the Malaysian Communications and Multimedia Commission for a period of 10 years.
The NFP licence enables Handal Digital to own and operate telecommunication towers in Malaysia. The space on these towers can be leased or rented to mobile operators.
Additionally, Handal can also set up 5G private networks which offer high-speed, low-latency connectivity, enabling real-time data transfer and communication via the integration of the internet of things.
On Dec 19, 2022, Handal’s 49%-owned company, Handal Borneo Resources Sdn Bhd entered into an agreement with Tanjung Aru Eco Development Sdn Bhd, a wholly-owned subsidiary of the Chief Minister of Sabah Inc, in respect of the extraction and sale of marine sand by Handal Borneo Resources for a period of 15 years. This marks Handal’s foray into the marine sand business.