Bhic S Jv Gets Rm115mil Helicopter Maintenance Contract Extension


 
The RMAF’s fleet of EC725 helicopters are used primarily for search and rescue, and utility missions. (Twitter pic)PETALING JAYA: Boustead Heavy Industries Corp Bhd (BHIC) said its 51%-owned joint venture’s contract to provide EC725 helicopter maintenance and supply services to the air force has been extended by one year by the defence ministry (Mindef).
In a bourse filing today, BHIC, the shipbuilder arm of recently delisted Boustead Holdings Bhd, said the contract extension for BHIC AeroServices Sdn Bhd (BHICAS) is valued at RM115.3 million.
“The new total ceiling contract value is RM706.5 million,” BHIC said.
The JV company had received a supplemental letter of award from Mindef for the one-year extension from April 1, 2023 till March 31, 2024.
BHICAS is a joint venture between BHIC’s wholly-owned subsidiary Boustead Defence Technologies Sdn Bhd (51%), Prestige Pillar Sdn Bhd (30%) and Airbus Helicopters Malaysia Sdn Bhd (19%).
BHIC said apart from the revision of the contract value, there are no significant differences between the substance of the contract and the supplemental letter of award.
The supplemental contract will have no impact on BHIC’s earnings for the financial year ending Dec 31, 2023 (FY2023) and FY2024.
BHIC first clinched the contract in 2014, which was originally for three years and carried a value of RM220 million.
It was subsequently extended by three years in 2017, adding RM215 million to its ceiling value, and followed by another three-year extension in 2020, where an additional ceiling value of RM113.2 million was tagged on.
Media reports indicate that the EC725 helicopters first entered service with the Royal Malaysian Air Force in November 2012. The 12 helicopters, manufactured by Airbus, are used for search and rescue and utility missions.
Boustead owns a 65% stake in BHIC. The Armed Forces Fund Board (LTAT), which recently took Boustead private, holds another 8.16% direct stake in BHIC.
BHIC’s shares closed six sen or 16.22% higher at 43 sen, giving it a market capitalisation of RM105.22 million. - FMT


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