KUALA LUMPUR: BOUSTEAD Heavy Industries Corp Bhd (BHIC) is bullish about its outlook, given the strong turna-round last year and a recent contract to supply littoral mission ships to the navy.
BHIC returned to the black for the financial year ended December 31 2016 with a net profit of RM76.7 million, compared with RM30.74 million net loss previously.
Group revenue rose to RM307.5 million, compared with RM265.6 million in 2015.
“Revenue from defence-related maintenance, repair and overhaul (MRO) activities contributed significantly to the revenue in the year. Lower operating costs were recorded, compared with the previous corresponding year, mainly due to revision in project cost under defence-related MRO activities,” said BHIC in a statement yesterday.
For the fourth quarter, it recorded a net profit of RM55.59 million against a net loss of RM52.56 million previously. Revenue was higher at RM110.5 million from RM69.21 million earlier.
BHIC executive deputy chairman and managing director Tan Sri Ahmad Ramli Mohd Nor said the strong results were a solid testament of the measures to rationalise its business and enhance operational efficiency and productivity.
“These include group-wide strategic transformation initiatives aimed at attaining higher levels of operational efficiencies, which have begun to bear fruit. BHIC also implemented a more focused approach to core businesses and competencies,” he said in a separate statement.
Ramli expressed optimism that BHIC was on track to continue recording commendable performance in the quarters ahead, despite the challenging operating landscape.
“Encouraging prospects for the group include several positive developments such as the receipt of non-binding letter of intent dated October 26 last year from the Defence Ministry for the supply of four units of the littoral mission ship for the Royal Malaysian Navy to our associate company and the award of new projects to our joint-venture companies”, he said.
BHIC will continue to source for new oil and gas (O&G) projects amid the improving industry landscape.
“The O&G sector is on firmer ground now compared with a year ago as it adapts to the low oil price environment through cost rationalisation, capital discipline, cash flow preservation and human capital development.
“This year will see the full effect of the internal reorganisation exercise, which is to be completed by end-June with transformation efforts to focus on defence and security, energy and commercial sectors,” it said.
BHIC declared an interim single-tier dividend of three sen per share for the financial year ending December 31, which will be paid on March 30.