BHIC posts 10 times higher net profit in Q2 over Q1

KUALA LUMPUR: Boustead Heavy Industries Corp Bhd’s (BHIC) net profit quarter-on-quarter rose 10-fold to RM23.94 million for the second quarter ended June 30, 2017.

On a year-on-year basis, the net profit eased five per cent from the RM25.26 million posted a year ago.

For the first half, BHIC’s net profit jumped four fold to RM26.65 million from RM6.22 million in the same period last year.

Group revenue for the quarter dropped to RM43.77 million compared with RM69.75 million a year earlier.

In a filing to Bursa Malaysia yesterday, BHIC said revenue was derived mainly from defence-related maintenance, repair and overhaul (MRO) activities. 

“Higher revenue recorded in last year’s corresponding quarter was largely attributable to approved variation orders for the oil and gas’ (O&G) Belum topside project,” it said.

“In addition, lower operating costs were recorded in last year’s corresponding period mainly due to revision in the project cost under defence-related MRO.”

It added that higher interest income in the last year’s corresponding period was mainly due to interest earned from the deposit pledged by it.

On the other hand, finance cost was lower in the current period mainly due to repayment of borrowings.

BHIC remains hopeful of future contracts, despite the government’s announcement of a cut back in its defence spending in the current year’s budget.

The group expects the contracts awarded recently to the joint venture companies to contribute positively towards its future earnings.

“In addition, the group will continue to pursue potential contracts with parties other than the Ministry of Defence such as the Royal Malaysian Police and Malaysian Maritime Enforcement Agency as well as overseas,” it said.

Related Articles