Zelan Q4 net loss widens

> Hit by Meena Plaza project and unrealised forex losses

PETALING JAYA: Zelan Bhd posted a wider net loss of RM59.10 million for the fourth quarter ended Dec 31, 2017, compared with a net loss of RM37.70 million a year ago, attributable mainly to a RM43.4 million loss from the Meena Plaza project and a higher unrealised foreign exchange loss of RM5.7 million from oversea subsidiaries.

Revenue fell 73.3% to RM17.39 million in the quarter compared with RM65.11 million in the previous year’s fourth quarter mainly due to the completion of major phases of the Drawbridge project, Bukit Bintang City Centre project and Material Off-Loading Facility Jetty project.

For the full year, the group’s net loss came in slightly lower at RM67.52 million, compared with a net loss of RM67.62 million in the previous year, while revenue declined 68.1% to RM71.07 million RM222.79 million due to the engineering and construction business segment that saw lower revenue mainly because of the completion of three projects.

On prospects, the group’s revenue for the next financial year will be principally derived from the balance of the order book of the local projects and the revenue on the asset management services and availability charges from the International Islamic University campus project, which begins in the first half of 2018.

The group is also pursuing construction contracts while continously implementing strategies to control costs. “The board will continue to manage the business with diligence and remain cautious of its future prospects,” Zelan said.