KUALA LUMPUR, Feb 24 — Boustead Heavy Industries Corporation Bhd recorded a net loss of RM21.55 million in the financial year ended Dec 31, 2022 (FY2022) compared to a net profit of RM15.19 million a year ago.

Revenue declined to RM141.76 million from RM149.19 million previously with the current year’s revenue mainly from submarine contracts and other defence-related maintenance, repair and overhaul (MRO) projects, a filing with Bursa Malaysia said today.

"Results from operations in FY2022 of RM6.0 million profit was lower than the RM36.0 million profit last year, mainly due to higher allowances for expected credit loss of RM32.2 million (FYE2021: RM9.6 million).

"Furthermore, higher operating expenses of RM27.6 million (FY2021: RM20.4 million) were mainly due to a right-sizing cost of RM3.4 million in 2022.

"Gain from the disposal of Kota Kinabalu Industrial Park (KKIP) land of RM6.8 million, on the other hand, cushioned the impact,” the filing said.

On prospects, it said that the company welcomes the government’s commitment to complete the Littoral Combat Ship (LCS) project and to safeguard the nation’s defence and security. This augurs well for the company.

"Moving forward, we hope to secure new government contracts and make headway in the commercial segment on the back of our marketing efforts and our infrastructure, experienced human capital and track record in delivering shipbuilding and MRO projects.

"Additionally, we will continue to capitalise our strengths as one of the country’s leading defence contractors by pursuing defence related contracts vigorously while exploring new businesses, most notably in the commercial segment.

"This is part of our efforts to maximise shareholder value to become a sustainable and more resilient organisation, in line with the Reinventing Boustead strategy,” it said. — Bernama