BHIC SET TO SAIL BACK TO BLACK
Company registers RM108.33m loss in FY18
BOUSTEAD Heavy Industries Corp Bhd (BHIC) is optimistic of returning to the black in the year ending December 31 2019 (FY19), despite a challenging operating environment.
Managing director Tan Sri Ahmad Ramli Mohd Nor said BHIC would leverage its capabilities in the maintenance, repair and overhaul (MRO) and shipbuilding, particularly in the defence and security segment.
“We have built our capabilities locally, while contributing to the growth of the economy. We offer costcompetitive for our products and services, which are of equivalent standard,” he said after the company’s annual general meeting, here, yesterday.
BHIC will also venture into the regional markets and secure more contracts for its defence and security divisions.
“We have hit the ground running this year with a clear future direction.
“Ongoing projects and works involve military assets, and hopefully new businesses will collectively have a positive impact on our FY19 earnings,” said Ahmad Ramli.
As at March 31 this year, BHIC’s order
book stood at RM4.3 billion, which would boost its earnings until 2023.
Shipbuilding makes about 60 per cent of BHIC’s order book while the balance 40 per cent is the MRO segment, which is involved in support service for helicopters, submarine and surface ships.
BHIC is also manufacturing four units of littoral mission ships and six units of littoral combat ships for the Navy, besides new generation patrol vessels and multirole support ships.
He said this was to cater to the Navy’s 15-to-5 Transformation Plan of creating a modern fit-for-purpose armada to protect the country’s maritime security and sovereignty.
“We will soon welcome new chairman Datuk Seri Amrin Awaluddin to steer the group’s next chapter of growth.
“We will move forward with renewed commitment with the aim of boosting earnings,” he said.
BHIC posted a net loss of RM108.33 million in the year ended December 31 2018 (FY18), against a net profit of RM10.58 million in FY17.
Revenue plunged 39 per cent to RM169.11 million in FY18, from RM277.65 million recorded in FY17, due to lower defence-related MRO activities, no new oil and gas projects and delay in finalisation of submarine contracts.
We will soon welcome new chairman Datuk Seri Amrin Awaluddin to steer the group’s next chapter of growth.