BHIC 2Q posts RM10m profit vs loss a year ago

BHIC 2Q posts RM10m profit vs loss a year ago
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Tuesday, 06 August 2013 18:56

Kuala Lumpur (Aug 6): BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd (BHIC) said it is on track to deliver good results for the current financial year, given the marked improvement in its first half results in 2013.

For the second quarter ended 30 June 2013, BHIC achieved a net profit of RM10.2 million on the back of a turnover of RM61.8 million. This compared with a loss of RM17.2 million a year ago.

“During the quarter, the heavy engineering and manufacturing segments continued to perform well, but the chartering segment reported a small loss as a result of higher operating costs,” said BHIC in a statement.

For the six months ended 30 June 2013, revenue posted was RM126.2 million, an 11% increase from RM114.1 million reported for the corresponding period the year before. The group reported net profit of RM15.3 million, compared with loss of RM31.4 million.

BHIC deputy chairman and managing director, Tan Sri Ahmad Ramli Hj Mohd Nor, said the positive results were mainly due to a significant contribution from its heavy engineering segment, which is no longer impacted by costs from the old shipbuilding projects.

On the outlook for the remainder of the year, Ramli said, “Given the positive performance…and increasing number of growth opportunities …, we are bullish about the potential that lies ahead.”

He added BHIC is on track to secure new projects in its focus niches in local and international commercial shipbuilding, as well as in the Oil and Gas sector which remains robust.

However, the chartering segment’s dependence on the health of the broader shipping industry makes the outlook for this particular segment uncertain.