Ranhill posts larger net loss of RM34m

KUALA LUMPUR: RANHILL BHD [], which is being taken private by its major shareholders, posted larger net loss of RM34.47 million in the quarter ended June 30, 2011 compared with losses of RM21.15 million a year ago.

It said on Thursday, Aug 25 that revenue fell 22.4% to RM499.67 million from RM644.15 million a year ago. Loss per share was 5.77 sen compared with 3.54 sen a year ago.

It said the lower revenue was mainly due to lower recognition of revenue from Libya Housing project and Senai Desaru Expressway project.

“The loss after tax attributable to equity holders (LATMI) of RM34.5 million, a RM13.3 million reduction compared to the preceding year corresponding quarter’s LATMI of RM21.2 million mainly due to the premium that have to be paid due to early redemption of the US dollar bond as per the trust deed. In addition, the losses are also due to the charging out of the total cost yet to be amortised in relation to the early redemption of both the US dollar bond and Ranhill Powertron II’s term loan,” it said.

For the 12-month period, it made a net profit of RM5.40 million, down 64.7% from RM15.34 million in the previous corresponding period. Revenue declined by 6% to RM1.99 billion from RM2.12 billion.

On the prospects, Ranhill said with the recently awarded oil and gas contract by Petroliam Nasional Bhd, the group expected continuing growth from the engineering works of its oil & gas sector arm through Ranhill WorleyParsons Sdn Bhd.

However, the suspension of works in Libya and its subsequent termination had a significant impact to the CONSTRUCTION [] division.

“The eventual termination of the Libya project had depleted the Group’s order book substantially. However, the company will continue to participate in tendering for new construction project,” it said.

Ranhill expected the water and power business to provide steady and recurring revenue, income and cash flow to the group.

“The group expects the revenue and profit contribution from the power business to increase as the new 190MW combined cycle power plant achieved the completion of its commercial operation date on March 23, 2011,” it said.