BHIC Q1 net profit jumps 67%

KUALA LUMPUR: Boustead Heavy Industries Corp Bhd (BHIC) posted a net profit of RM4.50 million for its first quarter ended March 31, 2018, marking a 67% increment compared to RM2.71 million in the previous year’s corresponding quarter, on lower operating cost and higher contribution from joint venture companies despite substantially lower revenue.

Its revenue stood at RM39.72 million, almost half of RM76.84 million posted in the previous year's corresponding quarter, as higher revenue in 2017 was largely attributable to defence-related maintenance, repair and overhaul (MRO) activities.

BHIC executive deputy chairman and managing director Tan Sri Ahmad Ramli Mohd Nor said the group’s performance in the first quarter of 2018, which was largely attributable to strengthened contribution from our business segments, was particularly significant given the challenging operating environment.

He said the group’s MSS exercise aimed at identifying the optimal organisational structure for BHIC has borne fruit particularly as it was able to successfully match the size of its human capital to the current market conditions and business prospects. This should lead to further enhanced efficiencies, which will enable the group to improve its operating cost and subsequently its bottom line.

“Looking ahead, we are on track to maintain our growth momentum and are focused on securing additional contracts from the RMN for the commissioning of new ships as well as for MRO works on existing ships.

"The group will also continue exploring prospects with other government agencies such as the Royal Malaysia Police and the Malaysian Maritime Enforcement Agency, as well as exploring new business opportunities abroad,” said Ahmad Ramli.