Hot Stock Perwaja falls after losses widen

by **Cals** Wed 27 Nov 2013, 10:17

Hot Stock Perwaja falls after losses widen

Business & Markets 2013

Written by theedgemalaysia.com

Wednesday, 27 November 2013 09:22

KUALA LUMPUR (Nov 27): Perwaja Holdings Bhd (PHB) shares dipped in early trade on Wednesday after the company said its net loss for the third quarter to September 2013 had widened to RM227.1 million, from a loss of RM38.3 million in similar quarter a year ago.
At 9.05am, the stock lost 8.5 sen to 16 with 776,000 shares done.
Revenue for the quarter fell to RM236.0 million, from RM372.0 million a year ago.
For the nine months to September 2013, total loss stood at RM319.8 million on revenue of RM899.2 million.
The steel manufacturer also announced that that its major subsidiary, Perwaja Steel Sdn Bhd, will not be able to pay off the Murabahah Medium Term Notes of RM50 million that falls due on 29 November 2013.
The reason given was that the electricity at the company’s Kemaman Plant has been disconnected by Tenaga National Berhad (TNB).
“There is, therefore, no visibility of when this MMTN repayment will be made,” said Perwaja.
Perwaja (PHB) added it is now a PN17 Issuer as the company has triggered the following criteria:
a) The auditors have expressed an emphasis of matter on PHB and its subsidiaries’ ability to continue as a going concern in the audited consolidated financial statements for the financial year ended 31 December 2012, and the shareholders’ equity of PHB based on a consolidated basis as at 30 September 2013 is less than 50% of the issued and paid-up capital of the company; and

b) A default in payment by its major subsidiary company, Perwaja Steel Sdn Bhd, today and PHB is unable to provide a solvency declaration to the stock exchange.