Boustead Heavy Industries post RM12.3m in net profit for 2Q21

by NUR HANANI AZMAN / pic by TMR FILE

BOUSTEAD Heavy Industries Corp Bhd (BHIC) posted a net profit of RM12.30 million in the second quarter ended June 30, 2021 (2Q21), compared to a net loss of RM567,000 in 2Q20.

It was achieved on the back of revenue of RM47.15 million which saw an improvement from RM35.91 million in 2Q20 due to variations in milestones achieved for the submarine contracts and other defence related maintenance, repair and overhaul (MRO) projects.

BHIC CEO Sharifuddin Md Zaini Al-Manaf said these positive results were product of various efforts which included internal business reorganisation involving a comprehensive review of the company‘s operational structure, resulting in the merging of business units and discontinuation of loss-making ones, and the downsizing of personnel.

Sharifuddin expects the remaining months of 2021 to be challenging, amid the Covid-19 pandemic that heavily contributed to the unstable economy of the country.

“We expect tough times ahead but we are committed to deliver projects in hand and we will continue to expand our business in the aerospace sector and commercial segment.

“The group will strive to optimally harness our excellent facilities along with our skilled and experienced human capital to provide the best services to our customers, secure new contracts and deliver maximum value to our shareholders,” he said in a statement.

For the six months, the group recorded a lower net profit of RM11.39 million versus RM19.82 million net profit in the same period last year mainly due to lower submarine contracts and other defence-related MRO works undertaken in 2021.

Profit in 2020 was predominantly due to reversal of expected credit losses of RM18.6 million.

For the cumulative financial period under review, BHIC recorded a revenue of RM66.1 million, RM13.9 million lower than RM80 million reported in the same corresponding period last year.