Based on the earlier letter of award in 2014, 2017, and 2020 Boustead Heavy Industries provided maintenance and supply of spares for the Royal Malaysian Air Force EC725 Helicopters via In-Service Support, this contract has now been extended in 2023.
BHICAS is a joint venture between BHIC Defence Technologies Sdn Bhd (51%), a wholly-owned subsidiary of the company, Prestige Pillar Sdn Bhd (30%), and Airbus Helicopters Malaysia Sdn Bhd (19%). In the latest award, BHICAS accepted the supplemental Letter of Award from the Ministry of Defence for an additional ceiling contract of RM115.3 million and an extension of the contract period from 1 April 2023 until 31 March 2024. With this, the new total ceiling contract value is RM706.5 million only.
Apart from the revision of the Contract value, there are no significant differences between the substance of the Contract and the Supplemental LOA.
The Supplemental LOA Boustead said will have no impact on the earnings of BHIC Group for the financial year ending 31 December 2023 and the financial year ending 31 December 2024.
