More boardroom changes at Boustead Heavy Industries

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KUALA LUMPUR (July 10): Boustead Heavy Industries Corporation Bhd (BHIC) has announced massive boardroom changes.

The warship builder told Bursa Malaysia that two of its  non-executive directors, Datuk Ishak Osman, 71, and Datuk Azzat Kamaludin have resigned effective today.

Meanwhile, BHIC has appointed six non-executive directors, according to its filing with Bursa Malaysia.

The six new appointments are Tan Sri Ramlan Mohamed Ali, Datuk Maznah Abdul Jalil, Fahmy Ismail, Tan Sri Aziah Ali, Dr Salihin Abang and Saadatul Nafisah Bashir Ahmad.

The size of BHIC’s board will expand to nine members with the latest changes. Its non-executive chairman is Tan Sri Ahmad Ramli Haji Mohd Nor. Ahmad Ramli is the former managing director of BHIC. He was redesignated to lead the board in May after Tan Sri Seri Lodin Wok Kamaruddin stepped down.

“BHIC expressed its gratitude to Datuk Ishak, who joined the group in 1998, and Datuk Azzat, who joined the group in 2005, for their years of dedicated service and thanked them for their wealth of experience and expertise which were instrumental in driving BHIC forward. The group wishes Datuk Ishak and Datuk Azzat all the very best in their future endeavours,” said BHIC in a separate statement.

For the full financial year ended Dec 31, 2018 (FY18), the group registered a net loss of RM108.33 million versus a net profit of RM10.58 million in FY17, while revenue fell 39% at RM169.11 million from RM277.65 million a year earlier.

BHIC has been in the red for the two consecutive quarters. It posted a net loss of RM4.3 million in the first financial quarter ended March 31, 2019 (1QFY19) compared to a net profit of RM4.5 million in the previous corresponding quarter.

The group attributed the loss to lower defence-related and commercial-based maintenance, repair and overhaul (MRO) activities.

Meanwhile, revenue for 1QFY19 was 8.62% lower at RM36.3 million, from RM39.72 million posted a year prior.