KUALA LUMPUR (May 24): Boustead Heavy Industries Corp Bhd (BHIC) returned to the black for the first quarter ended March 31, 2022 (1QFY22) with a net profit of RM6.51 million versus a net loss of RM916,000 a year ago, mainly attributed to higher revenue from maintenance, repair and overhaul (MRO) activities.
Quarterly revenue almost doubled to RM37.46 million from RM18.94 million, derived mainly from submarine contracts and other defence-related MRO projects, the group said in a filing on Tuesday (May 24).
BHIC noted that its joint venture companies posted a negative contribution of RM501,000 in the quarter under review — which mainly came from Contraves Advanced Devices Group — due to lower demand from its customers. “In addition, BHIC Bofors Asia Sdn Bhd and Airbus Helicopters Simulation Center Sdn Bhd also recorded a negative contribution due to higher operating expenses in the current period,” it added.
In a separate statement, BHIC chief executive officer Sharifuddin Md Zaini Al-Manaf said improving economic sentiment following the reopening of the economy augurs well for the group’s prospects in the coming quarters.
“We are especially optimistic about the commercial segment of the marine sector and marine leisure segment. In addition, we also expect our venture into the fixed wing military segment to yield results,” he added.
Boustead Holdings Bhd group managing director Datuk Seri Mohammed Shazalli Ramly said BHIC is poised for better financial footing, following the government’s announcement in April 2022 to restart the Littoral Combat Ships (LCS) project.
“Boustead group welcomes the announcement by the government and firmly supports BHIC’s efforts to mobilise its team to resume the project to ensure the LCS are completed and delivered to the Royal Malaysian Navy.
“BHIC’s positive results in the last two quarters stand testimony to its continuous efforts to improve its efficiency and productivity. This is in line with Boustead group’s Reinventing Boustead strategy to revitalise the group into a high performing, sustainable organisation,” he added.
Shares in BHIC closed unchanged at 47.5 sen on Tuesday, giving the group a market capitalisation of RM116.79 million.