corporate

BHIC wins RM1.1bil services contract to support Navy's prime minister class submarines

KUALA LUMPUR: Boustead Heavy Industries Corp Bhd (BHIC) has bagged a RM1.1 billion contract from the Ministry of Defence to provide in-service support for the Navy's prime minister class submarines.

Its wholly-owned BHIC Submarine Engineering Services Sdn Bhd (BSES) will seal a formal contract with the government at a later date, BHIC said in a filing with Bursa Malaysia today. 

The Armed Forces Fund Board (LTAT) owns 64.99 per cent of BHIC via Boustead Holdings Bhd. 

LTAT fully owns Boustead following a privatisation last year.

BHIC reported a net loss of RM6.67 million for the first quarter of financial year ending December 2024 compared to a net loss of RM6.5 million for the same period in 2023.

This was due to higher operating costs and lower contributions from joint venture companies amid lower customer demand.

Group revenue for the quarter edged up to RM19.15 million from RM6.36 million previously, thanks to positive variations in the milestones achieved for submarine contracts.

Last month, BHIC sold its 20.77 per cent stake in the Boustead Naval Shipyard Sdn Bhd (BNS), now Lumut Naval Shipyard Sdn Bhd, to the Ministry of Finance for RM1, giving the latter full control of BNS.

The ministry previously held a 79.23 per cent stake through Ocean Sunshine Bhd. 

The disposal was set for completion by Oct 3, 2023 but it was extended by nearly seven months and finalised in May.

The stake sale is part of the government's strategy to assume full control of the RM9.13 billion littoral combat ship project, which BNS failed to deliver on time. 

BHIC closed five sen or 1.03 per cent lower at 48 sen today for a market capitalisation of RM268.09 million.

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