Business

BHIC receives 1-year extension for RM159.15 mil new contract value

Group gets letter of acceptance for provision of in-service support for prime minister-class navy submarines

Updated 5 years ago · Published on 19 Jul 2021 10:00PM

BHIC receives 1-year extension for RM159.15 mil new contract value
Boustead Heavy Industries Corporation Bhd says there are no significant differences between the substance of the initial submarine contract and additional letter of acceptance for the one-year extension on the service. – Langkawi International Maritime and Aerospace pic, July 19, 2021

KUALA LUMPUR – Boustead Heavy Industries Corporation Bhd (BHIC) has accepted the additional letter of acceptance (LoA) from the Defence Ministry for the extension of contract for a period of one year until December 31 for a new contract value of RM159.15 million.

The extension of contract was for the contract received by its unit Boustead DCNS Naval Corporation Sdn Bhd as was announced on June 16, 2020, (valued at RM154.3 million) for a provision of in-service support for prime minister-class submarines for the Royal Malaysian Navy contract.

Apart from the extension of the contract period and revision of the contract value, there are no significant differences between the substance of the contract and the additional LoA.

“The contract and the additional LoA will contribute positively to the earnings of BHIC Group for the financial year ending December 31, 2021,” the company said in a filing with Bursa Malaysia.

At the close of Bursa Malaysia trading today, BHIC shares slipped half a sen to 47.5 sen with 19,700 shares transacted. – Bernama, July 19, 2021

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