The ongoing reinventing efforts by Boustead Heavy Industries Corporation Bhd (BHIC) to become a high-performance organisation are beginning to yield positive results as it registered RM12.3 million Profit After Tax (PAT) for its second quarter (2Q FY21) ended June 30, 2021, against Loss After Tax (LAT) of RM567,000 in the same quarter last year (2Q FY20).
The PAT recorded in the second quarter of 2021 was achieved on the back of revenue of RM47.2 million which saw an improvement from RM35.9 million in Q2 FY2020, due to variations in milestones achieved for the submarine contracts and other defence-related maintenance, repair and overhaul projects.
BHIC also improved its Profit Before Tax at RM15.6 million from RM1.6 million in the previous corresponding quarter of 2020.
These positive results were consequences of various bold efforts which included internal business reorganisation involving a comprehensive review of the Company‘s operational structure, resulting in the merging of business units and discontinuation of loss-making ones, and the downsizing of personnel.
BHIC CEO Sharifuddin Md. Zaini Al-Manaf says the recent contract extensions by its Joint Venture (JV) companies are expected to contribute positively to the Group’s earnings for FY2021.
BHIC Aero Services Sdn Bhd, a JV company with Airbus, received a contract extension on June 30, 2021, for the Integrated Maintenance and Logistics Support Services for three units of Malaysia Maritime Enforcement Agency Dauphin AS365N3 helicopters.
Meanwhile, Boustead DCNS Naval Corporation Sdn Bhd, a JV company with France’s Naval Group, was awarded a contract extension on July 19, 2021, for In-Service Support for the Royal Malaysian Navy’s fleet of Scorpene submarines.
Sharifuddin expects the remaining months of 2021 to be challenging, amid the Covid-19 pandemic that heavily contributed to the unstable economy of the country.
