BHIC turns around with RM2.71m Q1 net profit
KUALA LUMPUR: Boustead Heavy Industries Corp Bhd (BHIC) recorded a RM2.71 million net profit in the first quarter ended March from a loss of RM19.04 million in the same period last year.
Revenue rose 22 per cent to RM76.8 million in the quarter from RM63 million in the same period previously.
In its filing to the stock exchange yesterday, BHIC said the results were due to improved operational efficiencies.
BHIC executive deputy chairman and managing director Tan Sri Ahmad Ramli Mohd Nor said the group’s joint-venture companies delivered a stronger performance.
BHIC’s associates made good progress in the Littoral Combat Ship project for the Royal Malaysian Navy (RMN).
“The defence-related ship repair segment posted improved profit due to the progress of ship repair works,” said Ramli.
He also cited the higher revenue contribution from defencerelated maintenance, repair and overhaul activities.
“Mutual Separation Scheme offered by the group, involving a total payment of RM10.1 million, has been accepted by 160 personnel thus far.
“This has led to a reduction in overall employee headcount,” said Ramli.
“The exercise allows us to enhance efficiencies and reduce staff cost, which will enable us to improve operating cost and subsequently strengthen our bottom line,” he added.
Moving forward, Ramli is confident BHIC will maintain growth momentum, more so with the recently awarded contracts.
They include the contract with the Defence Ministry for the supply of four units of Littoral Mission Ships for the RMN.
The first two vessels will be built at a shipyard in China while the next two will be built at Boustead Naval Shipyard in Lumut, Perak. Ooi Tee Ching