KUALA LUMPUR (April 23): Shares in Boustead Heavy Industries Corp Bhd’s (BHIC) rose as much as 6.5 sen or 12.87% to 57 sen this morning after the group said it had been awarded a contract worth RM78.14 million from the Ministry of Defence (Mindef) for the upkeeping of submarine facilities for the Royal Malaysian Navy.

The group said yesterday its wholly-owned subsidiary BHIC Submarine Engineering Services Sdn Bhd (BSES) received the letter of acceptance from the ministry on April 7 for the two-year job in effect from Jan 1, 2021 until Dec 31, 2022.

It expects the new contract to contribute positively to its earnings for the financial year ending Dec 31, 2021 (FY21).

BHIC's other subsidiary, Boustead Naval Shipyard Sdn Bhd, was appointed the lead contractor of the RM9 billion littoral combat ship (LCS) programme, which aims to build and deliver six advanced combat ships to the Royal Malaysian Navy.

At 10.34am today, the counter had pared some gains at 55 sen, still up 4.5 sen or 8.91%. At 55 sen, the group was valued at RM125.47 million.

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BHIC gets RM78m submarine contract from Mindef