BHIC Gets Additional Contract for Submarine Maintenance

Scorpene submarines of the RMN (Source: DCNS)

KUALA LUMPUR, March 30 - Boustead DCNS Naval Corp Sdn Bhd, a 60 per cent-owned unit of Boustead Heavy Industries Corp Bhd (BHIC), has received an additional contract with a ceiling value of RM531.2 million from the Malaysian government.

In a filing to Bursa Malaysia, BHIC said the contract was for the in-service support (ISS) for two units of Prime Minister's class submarines for the Royal Malaysian Navy. 

It said the additional contract value for the extension of the ISS contract would commence today to May 31, 2017.

"The ISS contract will have a material effect on the earnings of BHIC group for the financial year ending Dec 31, 2015, and will contribute positively to its future earnings," it said.

Meanwhile, in a separate statement, BHIC executive deputy chairman and managing director, Tan Sri Ahmad Ramli Mohd Nor, said the this contract would allow the company to continue the maintenance of the two submarines prior their refit.

"The first vessel is due to commence its refit by year-end," he said.

BHIC is a subsidiary of Boustead Holdings Bhd, which is a subsidiary of the Armed Forces' Funds. (BERNAMA)