PETALING JAYA: Boustead Heavy Industries Corp Bhd’s (BHIC) net profit for the second quarter ended June 30 slipped 5% to RM23.94mil from RM25.26mil a year ago.
Revenue stood at RM43.8mil.
In a statement, BHIC executive deputy chairman and managing director Tan Sri Ahmad Ramli Mohd Nor said the oil and gas (O&G) segment recorded an additional revenue of RM5.8mil in relation to the Belum Topside project.
On its prospects going forward, BHIC said the group expected the contracts awarded recently to its joint-venture companies to contribute positively to future earnings.
“In addition, the group will continue to pursue potential contracts with parties other than the Defence Ministry such as the police and the Malaysian maritime enforcement agency.”
Separately, BHIC said commercial shipbuilding would continue to come under pressure from the low demand for ships, tonnage overcapacity, tight financing, low oil prices and the uncertain global economic outlook.
“This will continue to put pressure on shipyards, which are already reeling from thin orderbooks and cancelled deliveries.
“The crude oil prices continue to be volatile. The trend of oil majors scaling down on capital expenditure is expected to continue and pose challenges to players in the O&G industry for the major part of the year.”