BOUSTEAD HEAVY INDUSTRIES ON COURSE FOR FURTHER GROWTH

KUALA LUMPUR, 5 May 2008 – Staying on a positive course after its successful turnaround, Boustead Heavy Industries Corporation Berhad (BHIC) is poised to deliver continued growth in its current financial year.

For its first quarter ended 31 March 2008, the BHIC Group recorded a profit before tax of RM31.8 million on the back of a turnover of RM100.9 million. This marks a significant improvement compared with its previous corresponding quarter’s loss before tax of RM0.5 million and a turnover of RM14.7 million.

The BHIC Group’s improved performance is attributed to the increased revenue arising from the completion of its on-going projects as well as higher share of profit from its defence-related shipbuilding associate company, Boustead Naval Shipyard Sdn Bhd.YBhg.

Laksamana Madya (B) Dato’ Seri Ahmad Ramli Haji Mohd Nor, Executive Deputy Chairman of BHIC, said, “Our strategic objective is to strengthen our earnings potential by building on our core competencies to tap local and international opportunities. Ultimately, we want to deliver sustained financial growth and enhanced shareholders value in a consistent and long-term basis.”

“Moving forward, we have to continue to deliver on our contractual obligations with our customers. Ability to deliver will inspire greater level of confidence in not just with our current customers but also potential customers.”

During the quarter under review, Boustead Penang Shipyard Sdn Bhd, a wholly-owned subsidiary of BHIC, was awarded a contract in February 2008 from Sealink Sdn Bhd for the construction of two units of 7000DWT oil and chemical carriers for a total contract sum of USD32.9 million or approximately RM102.0 million.

In January 2008, BHIC Petroleum Sdn Bhd, another wholly-owned subsidiary of BHIC, was awarded a contract from Carigali-PTTEPI Operating Company Sdn Bhd to provide engineering, procurement, construction and on-shore commissioning of the Muda Living Quarters Building for a total contract sum of USD26.7 million or approximately RM82.8 million.

In terms of its defence-related business, BHIC ’s subsidiary, BHIC BOFORS Asia Sdn Bhd, executed a contract in January 2008 with the Ministry of Defence Malaysia to supply and deliver BOFORS 57mm gun spare parts to the Royal Malaysian Navy for a total contract sum of RM9 million.

“We intend to secure more business by broadening our market reach and catering to a wider clientele base in both the commercial and defence sectors of the maritime industry.”

“By making further improvements in our productivity levels and continuing to invest in our human capital, we are confident we can achieve our goal to become one of the region’s leadings participants in this industry,” YBhg. Laksamana Madya (B) Dato’ Seri Ahmad Ramli concluded.


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