KUALA LUMPUR: Boustead Heavy Industries Corp Bhd’s (BHIC) second-quarter ended June 2019 profits plunged 59.28 per cent to RM2.94 million 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 second quarter revenue fell 9.70 per cent to RM53.93 million from RM49.16 million due to revisions of the submarines contracts and variations in milestone achieved for defence-related maintenance, repair and overhaul projects.
In the first-half of 2019, BHIC slipped into losses amounting to RM1.36 million from a net profit of RM11.72 million, while revenue edge up 1.52 per cent to RM90.23 million from RM88.88 million, a year ago.
On outlook, BHIC is positive on the Defence White Paper slated to be tabled by the Ministry of Defence later this year, 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.