Boustead Heavy Industries 3Q net profit down on lower revenue

TheEdge Wed, Nov 20, 2019 11:26pm - 4 years View Original


KUALA LUMPUR (Nov 20): Boustead Heavy Industries Corp Bhd (BHIC) saw its net profit fall 72.4% to RM3.28 million or 1.32 sen per share for its third quarter ended Sept 30, 2019, from RM11.87 million or 4.78 sen per share a year earlier.

This comes on the back of a 40.7% drop in revenue to RM36.41 million from RM61.42 million, according to the group’s filing with Bursa Malaysia today.

Cumulative net profit for the nine-month period tumbled 91.9% to RM1.92 million or 0.77 sen per share, from RM23.59 million or 9.49 sen per share during the same period last year.

Revenue for the period fell 15.74% to RM126.64 million from RM150.3 million.

BHIC said earnings were lower due to a variation in milestones achieved from defence-related maintenance, repair and overhaul projects, lower contribution from the joint ventures and higher finance costs.

Moving forward, the group plans to expand its customer base to other government and non-governmental agencies as well as to penetrate Southeast Asian and Middle East markets.

BHIC said it will continue to be instrumental in shaping the direction of local naval shipbuilding industry for the long-term, targeting to fulfil the Royal Malaysian Navy’s requirement by focusing on participating in the construction of the littoral combat ship, littoral mission ship, multi-role support ships and new generation patrol vessels.

Shares of Boustead Heavy Industries closed two sen or 1.54% lower at RM1.28 today, valuing the group at RM318.03 million.

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