Boustead Heavy Industries Corporation Bhd (BHIC) continues to improve on its financial performance by recording a Profit After Tax (PAT) of RM6.5 million in the first quarter ended 31 March 2022 (Q1FY2022) compared to a cumulative Loss After Tax (LAT) of RM916,000 in the corresponding quarter last year (Q1FY2021),
Meanwhile Profit Before Tax for the quarter stood at RM9.0 million against a Loss Before Tax of RM707,000 in Q2FY2021. The profits were mainly contributed by higher maintenance, repair, and overhaul (MRO) activities.
The positive Q1FY2022 results were achieved on the back of revenue of RM37.5 million, almost double than the RM18.9 million revenue generated within the same period in 2021. Most of the revenue generated from the Royal Malaysian Navy’s (RMN) submarine contracts and defence-related MRO projects.
BHIC Chief Executive Officer Sharifuddin Md. Zaini Al-Manaf said the results can be partly attributed to the ongoing restructuring efforts to put company back into the platform of profitability. He said, “Our continuous efforts to restructure our business through organisational restructuring, merging of certain business units and closure of non-profitable ones, and developing talents to boost efficiency and productivity have been instrumental in contributing to the positive results in the first quarter of FY 2022.”
Sharifuddin said that the improving economic sentiment following the reopening of the economy augurs well for the Group’s business prospect in the upcoming quarters. “We are especially optimistic about the commercial segment of the marine sector and marine leisure segment. In addition, we also expect our venture into the fixed-wing military segment to yield results,” he added.
Meanwhile, Boustead Holdings Berhad Group Managing Director Dato’ Sri Mohammed Shazalli Ramly said BHIC is set to be on a better financial footing following the announcement by the Government in April 2022 to restart the Littoral Combat Ships (LCS) project.
“Boustead Group welcomes the announcement by the Government and firmly supports BHIC’s efforts to mobilise its team to resume the project to ensure the LCS are completed and delivered to RMN”, said Shazalli.
“BHIC’s positive results in the last two quarters stand testimony to its continuous efforts to improve its efficiency and productivity. This is in line with Boustead Group’s Reinventing Boustead strategy to revitalise the Group into a high performing, sustainable organisation,” he added.
