Boustead Heavy Industries Corporation Bhd’s (BHIC) wholly-owned subsidiary, BHIC Submarine Engineering Services Sdn Bhd (BSES), has received letters of award for two Royal Malaysian Navy (RMN) submarine-related contracts from the Ministry of Defence worth RM140 million.
BHIC told the stock exchange that the first contract involves interim in-service support (ISS) for the RMN Prime Minister’s Class submarines at a value of RM99.8 million.
The contract period is for 11 months from March 15, 2023 until February 14, 2024.
In a separate stock exchange filing, the group said BSES has also secured an extension to the submarine facilities upkeep contract for the RMN at a value of RM40.2 million.
The contract period is for 12 months from Jan 1, 2023 until Dec 31, 2023.
“A formal contract between the government of Malaysia and BSES will be finalised and executed at a later date,” said BHIC.
The group said both contracts will contribute positively to the earnings of the BHIC Group for the financial year ending Dec 31, 2023.