BHIC Q2 net profit surges ten­fold

New Straits Times - - Business -

KUALA LUMPUR: Boustead Heavy In­dus­tries Corp Bhd’s (BHIC) net profit rose ten­fold quar­ter-on­quar­ter to RM23.94 mil­lion for the sec­ond quar­ter ended June 30 2017.

On a year-on-year ba­sis, the net profit eased five per cent from the RM25.26 mil­lion posted in the same pe­riod a year ago.

For the first half, BHIC’s net profit jumped fourfold to RM26.65 mil­lion from RM6.22 mil­lion in the same pe­riod last year.

Group rev­enue for the quar­ter dropped to RM43.77 mil­lion com­pared with RM69.75 mil­lion a year ear­lier.

BHIC said its rev­enue was de­rived mainly from de­fence-re­lated main­te­nance, re­pair and over­haul (MRO) ac­tiv­i­ties.

“Higher rev­enue in last year’s cor­re­spond­ing quar­ter was largely at­trib­ut­able to ap­proved vari­a­tion orders for the oil and gas Belum top­side project,” it said.

“In ad­di­tion, lower oper­at­ing costs were recorded in last year’s cor­re­spond­ing pe­riod mainly due to re­vi­sion in the project cost un­der de­fence-re­lated MRO.”

It said higher in­ter­est in­come in the last year’s cor­re­spond­ing pe­riod was mainly due to in­ter­est earned from the de­posit pledged.

On the other hand, fi­nance cost was lower in the cur­rent pe­riod mainly due to re­pay­ment of bor­row­ings.

BHIC re­mains hope­ful of fu­ture con­tracts, de­spite the gov­ern­ment’s an­nounce­ment of a cut back in its de­fence spend­ing in the cur­rent year’s bud­get.

WEB­SITE PIC

BHIC’s rev­enue is de­rived mainly from de­fence-re­lated main­te­nance, re­pair and over­haul ac­tiv­i­ties.

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