KUALA LUMPUR: Shares in Boustead Heavy Industries Corp Bhd (BHIC) rose over 8% after receiving a one-year contract extension from the Ministry of Defence (Mindef).

       The counter added 8.42%, or four sen to 51.5 sen. It has fallen some 10.4% so far this year.

       BHIC said it has received a one-year contract extension for the provision of In-Service Support for Prime Minister's Class Submarines for the Royal Malaysian Navy for RM159.15mil.

       The contract extension was awarded by Mindef to Boustead DCNS Naval Corp Sdn Bhd (BDNC).

       BDNC is a joint venture company between BHIC Defence Technologies Sdn Bhd (60%), a wholly owned subsidiary of BHIC, and Naval Group (40%).

       The contract is effective from Jan 1, 2021 to Dec 31, 2021.

       BHIC said 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 Letter of Acceptance (LoA).

       The contract and the additional LOA will contribute positively to the earnings of BHIC Group for the financial year ending Dec 31, 2021.