BHIC reverses losses, 3Q profit at RM15.9m

by **Cals** Thu 14 Nov 2013, 21:21

Business & Markets 2013

Written by Zatil Husna of theedgemalaysia.com

Thursday, 14 November 2013 18:12

KUALA LUMPUR (Nov 14): Boustead Heavy Industries Bhd (BHIC) reported a net profit of RM15.9 million for the third quarter ended September 30, 2013 (3QFY13). This compares with a RM27.1 million net loss a year earlier.

BHIC, a ship builder, said in a statement to Bursa Malaysia today that the profit came on higher income from maintenance, repair and overhaul (MRO) operations. The firm said it is no longer burdened by cost from old ship-building jobs.

Revenue soared 110.9% to RM81.6 million in 3QFY13 from RM38.5 million, BHIC said.

“Heavy engineering segment yielded positive results mainly from higher income generated by MRO activities coupled with a better performance by the associates and the joint venture company undertaking submarine maintenance.

“The chartering segment continued to report utilisation and charter rates that were better than last year,” it said.

For the nine-month period, BHIC reported a net profit of RM31.2 million compared to a RM58.8 million net loss a year earlier. Revenue climbed 35.9% to RM207.1 million from RM152.6 million.

Looking forward, the group expects its heavy engineering segment’s revenue in 4QFY13 to be driven by the performance of current MRO projects.

In addition, the associates and manufacturing segment’s income will continue to be largely contributed by the littoral combat ship project.

“Notwithstanding this, the group’s approach is to present the most competitive price bids through periodic review of cost structures and work processes,” BHIC said.