BHIC net profit plunges 59.28 pct to RM2.94 mil in Q2
KUALA LUMPUR: Boustead Heavy Industries Corp Bhd’s (BHIC) net profit plunged 59.28 per cent to RM2.94 million in the second-quarter (Q2) ended June 30, 2019, from RM7.22 million previously.
In an exchange filing today, BHIC said lower earnings were dragged by lower contributions from joint venture and higher finance costs.
Its Q2 revenue fell 9.70 per cent to RM53.93 million from RM49.16 million due to adjustments made on the submarines contracts and variations in milestone achieved for defence-related maintenance, repair and overhaul projects.
For the first-half of 2019, BHIC slipped into red with a net loss of RM1.36 million from a net profit of RM11.72 million, while revenue increased 1.52 per cent to RM90.23 million from RM88.88 million a year ago.
The group said it was encouraged by prospects that could arise from the Defence White Paper slated to be tabled by the Ministry of Defence later this year, which will provide a long-term plan for the country’s defence capabilities.
BHIC non-executive chairman Tan Sri Ahmad Ramli Mohd Nor said there would be further opportunities to be leveraged from The Royal Malaysian Navy’s ongoing 15-to-5 Transformation Programme that aims to create a fit for purpose defence armada.
“In addition, recent contracts awarded to the Group’s associates and JV companies are expected to contribute positively to our bottom line,” he said in a separate statement today
- August 23, 2019 @ 10:05pm