Monday 1 April 2013

Boustead suffers heavy losses


Shipbuilder and defence engineering company Boustead Heavy Industries suffered a net loss of RM112.3 million for the year ending 2012, compared to net  profits of RM18.5 million recorded a year ago, due mainly to a one-time cost overrun on its shipbuilding business.
For the fourth quarter alone, its losses were also sharply higher at RM59 million, compared to RM2.5 million losses in the same period a year ago, the company said in a statement to Bursa Malaysia. Boustead however said it expected business to rebound in 2013, aided by subsidiaries undertaking maintenance, repair and overhaul of naval ships, submarines and helicopters and an end to its shipbuilding cost overruns.
“With the completion of the final commercial shipbuilding project in January 2013, the heavy engineering’s segment will not incur further cost implications of this nature,” it said.
The company said that it’s revenue rose 36 percent to RM214 million and 19 percent to RM544 million respectively for the fourth quarter and the whole of 2012, over the previous periods a year ago.
Rising defence related projects such as the Littoral Combat Ship (LCS) project and chartering of vessels contributed positively to its revenue even as the company suffered some setback as three chemical tankers were impaired.

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