BHIC OPTIMISTIC ON GROWTH

KUALA LUMPUR, 15 November 2011 – Boustead Heavy Industries Corporation Berhad (BHIC) posted a revenue of RM150.0 million for its third quarter ended 30 September 2011. This marked a 25% increase compared with RM120.8 million achieved for previous quarter of the current financial year. The increase in revenue is mainly contributed by the Group’s defence related projects. The Group however reported a profit after tax of RM1.2 million given cost escalations on certain commercial shipbuilding projects.

For the nine months period ended 30 September 2011, the Group recorded revenue of RM387.5 million, derived from its source of sustained revenue generation which is mainly driven by its defence related projects.

Cumulatively, the Group reported profit after tax of RM21.0 million. The reduction in profit compared to last year’s corresponding period was mainly due to costs incurred in completing certain commercial shipbuilding projects, higher finance charges and lower share of profits from associates.

Managing Director of BHIC, Tan Sri Ahmad Ramli Mohd Nor emphasised the Group’s commitment to the commercial sector. “This quarter has been challenging and we have worked with great effort to manage our projects efficiently. With the projects nearing completion, we are actively exploring new opportunities in shipbuilding and fabrication, taking into account the lessons learnt from the current projects.”

“In addition to this, our joint venture companies are expected to continue providing positive contribution to the Group’s bottom-line. As for our associate, the negotiations to finalise the contract to build six new Littoral Combat Ships is progressing with the various project stakeholders.”

“The Group will continue its cost reduction efforts, particularly by strengthening our human resource through operational efficiency and optimisation of material costs through the execution of our transformation strategy,” he ended.

-ends-

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
For further information, please call:
Natalia Ghani at 012 231 4782 or Sheetal Bains at 03 7958 8348
or email: acorncommunications@acornco.com.my