Boustead Heavy Industries Corporation Bhd (BHIC) reported a significant increase in net loss in the fourth quarter ended Dec 31, 2023 (Q423), reaching RM256.72 million, largely attributed to provisions for the delayed littoral combat ships (LCS) project.
The company booked an allowance for expected credit losses related to Lumut Naval Shipyard Sdn Bhd (Lunas).
Despite the loss, revenue for the quarter rose by 28.9% year-on-year to RM49.69 million.
BHIC is exploring opportunities beyond its traditional sectors and anticipates positive contributions from interim in-service support contracts for the Royal Malaysian Navy submarines in FY2024.
For the full year, net loss widened to RM263.88 million, with revenue declining to RM127.36 million.
No dividend was declared for FY2023.
As of the market close today, the stock remained steady at 49 sen, reflecting a group valuation of RM276.5 million.