BHIC turns around with RM2.71m Q1 net profit

New Straits Times - - Business / News -

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

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.