KUALA LUMPUR: Boustead Heavy Industries Corporation Bhd (BHIC) posted a higher net profit of RM25.1 million in the second quarter of 2024 (2Q24) compared to RM5.05 million the corresponding quarter.
Its revenue surged threefold to RM101 million from RM32.8 million the same quarter last year, driven by higher maintenance, repair and overhaul (MRO) in submarine contracts.
The group recorded a net profit of RM25.2 million in 2Q24, marking about a fivefold increase from RM5.1 million in the same quarter last year.
"The increase was largely driven by submarine MRO activities, operational efficiency and reduced debt servicing costs," it added.
BHIC chief executive officer Feroz Razi Ramli said the contracts by the Defence Ministry for the provision of interim in-service support (ISS) for the Royal Malaysian Navy submarines and ISS for the Royal Malaysian Air Force EC725 helicopters are expected to contribute positively to the group's earnings in FY2024.
"With our shareholders' funds, cashflow, gearing ratio and net assets per share in a much healthier position, we are poised to pursue new opportunities and embark on value creation initiatives to enhance our competitiveness and deliver sustainable value to our shareholders," he added.
Boustead Holdings Bhd group chief executive officer Izaddeen Daud noted that the commitment of the government to safeguard the nation's defence and security aligned well with the group's prospects to secure future defence-related projects and leverage its position as one of the leading defence contractors in Malaysia.
"The recent award by ministry to BHIC AeroServices Sdn Bhd to provide ISS to RMAF's EC725 helicopters and the renewal of other high-value government contracts underscore the government's trust in the group to deliver strategic projects on time, at cost and to the satisfaction of its customers," he said.