KUALA LUMPUR: Boustead Heavy Industries Consolidated Bhd (BHIC) fell into the red for the third quarter (3Q) ended Sept 30, due to higher operating and finance costs as well as the booking of smaller share of profits from its associates.
Net loss stood at RM2.4 million, a reverse from the RM26.9 million profit previously, while revenue fell 34.1% to RM150.02 million from RM227.7 million in 3QFY10.
“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,” managing director Tan Sri Ahmad Ramli Mohd Nor said in a statement yesterday.
The company is still in the black year-to-date, with profits at RM9.04 million for 9MFY11 or 15.5% of the RM58.37 million booked last year.
Revenue fell 8% to RM387.5 million from RM420.6 million for 9MFY10.
“The revenue was lower given that the previous year’s corresponding period incorporated revenue for the accumulation of work done on submarine maintenance for a longer period, compared with the nine months recorded in the current-year cumulative period,” the company said.
Earnings per share (EPS) sank to a negative 0.98 sen from 10.83 sen last year for 3Q. For 9MFY11, EPS was 3.64 sen versus 23.49 sen last year. Net assets per share fell three sen to RM1.70 as at Sept 30.
On its prospects for the current year, BHIC said, “The group will continue to strengthen its internal processes and governance oversight. Efforts to contain cost and improve financial performance were on-going.”
“In addition, our joint-venture companies are expected to continue providing positive contributions to the group’s bottom line,” Ramli said.
For associate Boustead Naval Shipyard Sdn Bhd, negotiations to finalise a contract to build six new littoral combatant ships “are at an advanced stage of preparations”, BHIC said.
A subsidiary of Boustead Holdings Bhd, BHIC is involved in maritime, defence and heavy engineering, with shipyards in Lumut, Penang, Langkawi and Ghana.
BHIC shares shed one sen or 0.35% to close at RM2.84 yesterday.
This article appeared in The Edge Financial Daily, November 16, 2011.
Net loss stood at RM2.4 million, a reverse from the RM26.9 million profit previously, while revenue fell 34.1% to RM150.02 million from RM227.7 million in 3QFY10.
“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,” managing director Tan Sri Ahmad Ramli Mohd Nor said in a statement yesterday.
The company is still in the black year-to-date, with profits at RM9.04 million for 9MFY11 or 15.5% of the RM58.37 million booked last year.
Revenue fell 8% to RM387.5 million from RM420.6 million for 9MFY10.
“The revenue was lower given that the previous year’s corresponding period incorporated revenue for the accumulation of work done on submarine maintenance for a longer period, compared with the nine months recorded in the current-year cumulative period,” the company said.
Earnings per share (EPS) sank to a negative 0.98 sen from 10.83 sen last year for 3Q. For 9MFY11, EPS was 3.64 sen versus 23.49 sen last year. Net assets per share fell three sen to RM1.70 as at Sept 30.
On its prospects for the current year, BHIC said, “The group will continue to strengthen its internal processes and governance oversight. Efforts to contain cost and improve financial performance were on-going.”
“In addition, our joint-venture companies are expected to continue providing positive contributions to the group’s bottom line,” Ramli said.
For associate Boustead Naval Shipyard Sdn Bhd, negotiations to finalise a contract to build six new littoral combatant ships “are at an advanced stage of preparations”, BHIC said.
A subsidiary of Boustead Holdings Bhd, BHIC is involved in maritime, defence and heavy engineering, with shipyards in Lumut, Penang, Langkawi and Ghana.
BHIC shares shed one sen or 0.35% to close at RM2.84 yesterday.
This article appeared in The Edge Financial Daily, November 16, 2011.
