BHIC BULLISH ON PROSPECTS AHEAD

KUALA LUMPUR, April 6, 2011 – Boustead Heavy Industries Corporation Berhad (BHIC) is confident that its current initiatives particularly in the commercial ship building, naval ship building, repairs and maintenance, oil and gas and weaponry and electronics are set to provide the Group with a steady and growing revenue stream.

For its financial year ended December 31 2010, the Group delivered improved profit after tax of RM80 million on the back of a turnover of RM650 million. In 2010, BHIC has paid a total dividend of RM15 million representing 6.0% per share for the financial year 2010, and in March 2011, paid another RM16 million representing 6.5% per share first interim dividend for the financial year 31 December 2011.

Boustead Naval Shipyard Sdn Bhd, the Group’s associate, has successfully delivered the six patrol vessels for the Royal Malaysian Navy (RMN) last year. The fifth and sixth patrol vessels were handed over to the RMN in May and December 2010 respectively.

Tan Sri Ahmad Ramli bin Haji Mohd Nor, Managing Director of BHIC, said, “BHIC Group is in a unique position today given its vast expertise in the maritime sector and its successful track record. Moving forward, we expect our current businesses to contribute positively to our bottom line. We are also committed to ensure the success of ongoing transfer of technology programmes, which we believe will benefit other stakeholders in the maritime industry in the medium and long run.”

“The prospects in the year ahead are encouraging as we work towards increasing our order book for defence and security related projects. In addition, more commercial ship building vessels are needed to meet the International Maritime Organization’s requirement of double hull tankers.”

“In the oil and gas sector, we are looking forward to participate on the substantial capital expenditure programme planned by PETRONAS. We are further encouraged by the various Government initiatives to boost the economy, including the strategies outlined by the Economic Transformation Programme.” concluded Tan Sri Ramli.

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Boustead Heavy Industries Corporation Berhad is a subsidiary of Boustead Holdings Berhad, a conglomerate listed on the Main Board of Bursa Securities. Boustead Holdings Berhad is a subsidiary of the Armed Forces’ Funds (Lembaga Tabung Angkatan Tentera).

The Boustead Heavy Industries Group is involved in maritime, defence and heavy engineering activities, with shipyards located in Lumut, Pulau Pinang, Langkawi and Ghana.

Issued on behalf of: Boustead Heavy Industries Corp. Bhd.
By: acorn communications sdn bhd
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