Boustead Heavy’s Q2 net profit more than doubles

PETALING JAYA: Boustead Heavy Industries Corp Bhd’s (BHIC) net profit for the second quarter ended June 30, 2016 more than doubled to RM26.26 million from RM9.16 million a year ago due to lower operating costs and higher profit from operations.
However, its revenue fell 4% to RM69.75 million from RM72.72 million in the previous corresponding quarter.
For the six months period, net profit dropped 65% to RM6.22 million from RM17.58 billion due to lower contribution from commercial-related maintenance, repair and overhaul activities, no new oil and gas project, no contribution from commercial shipbuilding activities and negative contribution from the joint ventures and associates for the current period.
BHIC saw its revenue fall 1% to RM132.74 million from RM134.02 million in the previous corresponding period.
The group said the oil and gas sector is on firmer ground now compared to a year ago as it adapts to the low oil price environment through cost rationalisation, capital discipline and cash flow preservation.
“The group will continue to source for new oil and gas projects amid the improving industry landscape,” it said in a stock exchange filing yesterday.