Friday, October 4, 2013

BHIC - RM9 billion contract

Its 21% owned BStead Naval Shipyard Sdn Bhd has received an amended acceptance letter from the ministry of defense for an earlier award in Dec 2011 to design, construct, equip, test and deliver six second generation patrol vessels called LCS, for the Royal Malaysian Navy.

This essentially confirms that the contract value has been fixed at rm9 billion compared with an earlier indicative ceiling price of the same sum.

Currently (Oct 2013), the group has gross and net order books of rm10 billion and rm3 billion respectively.

Expect further news flow of new contracts in the pipeline pending the announcement of Budget 2014 and against the backdrop of the Lahad Datu, Sabah, incursion earlier 2013 which highlighted the dire need for tighter security measures.

Additionally, the group which has a Petronas Nasional Bhd major fabrication license, is still open to non military based projects.

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