BHIC Q2 net profit surges tenfold
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.