Friday 19 May 2017

Boustead Heavy Industries in talks to supply warships

The Star Online 
Wednesday, 5 April 2017 | MYT 8:42 PM




PETALING JAYA: Boustead Heavy Industries Corp Bhd (BHIC), a company involved in maritime, defence and heavy engineering industry, is in talks with several regional armed forces to supply military ships.

Managing director Tan Sri Ahmad Ramli Mohd Nor said the interest cropped up following its participation in key defence and security events, such as the recent Langkawi International Maritime and Aerospace Exhibition and Defence Services Asia.

“It provided the platform to market our products and services to an international audience, in line with our aspiration to explore regional business opportunities,” he told reporters after the company’s AGM on Wednesday.

“With a solid track record in delivering and servicing naval vessels, we are looking to explore new prospects to expand our business internationally and meet the requirements of regional navies,” he said.

He also said the company expected this year’s performance to be encouraging, especially with the latest addition to its orderbook, a contract with the government worth RM1.17bil to build four units of littoral mission ships for the Royal Malaysian Navy.

“We are encouraged by this ‘vote of confidence’ and look forward to maintaining our position as the premier defence contractor in Malaysia,” he added.

Ahmad Ramli said with its ongoing strategic transformation plan, the company was optimistic sustaining its positive momentum and deliver solid results by sharpening its operational efficiencies while pursuing prospects for growth.

Other contracts that would drive the company’s revenue this year included existing contracts to build six littoral combat ships, as well as contract for submarine services involving major overhaul works, said Ahmad Ramli.

The company’s orderbook stood at RM7.5bil as of December last year, with a large chunk worth RM6.3bil coming from its shipyard business.

He added that government contracts made up 90% of its orderbook with the balance contributed by commercial buyers.

For the financial year ended Dec 31, 2016 (FY16), BHIC recorded a pre-tax profit of RM82mil against a pre-tax loss of RM3.94mil in FY15.

Revenue rose to RM307.51mil from RM265.64mil previously

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