Ranhill posts RM21m net loss for 4Q2010

KUALA LUMPUR: Ranhill Bhd posted a net loss of RM21.06 million for the fourth quarter (4Q) ended June 30, 2010 from a net profit of RM205.26 million a year ago, it announced on Bursa Malaysia on Monday, Aug 30.

The losses were due to the impairment of Senai Desaru Expressway’s irredeemable convertible unsecured loan stocks (ICULS) in the current year. In addition, the reversal of deferred tax provision is no longer required due to its water migration exercise last year, the company said.

Meanwhile, its revenue declined 8.9% to RM500.85 million from RM550.14 million a year ago, due to the lower recognition of revenue from the Senai Desaru Expressway and Melut Basin Expansion project.

However, its revenue for this quarter is 20.7% higher than its revenue of RM414.6 million for the previous quarter given higher recognition of water revenue and services in Libya.

It also recorded profit before tax of RM43.7 million, up from RM43.5 million posted in the previous quarter.

Its losses per share stood at 3.53 sen compared with 34.37 sen a year ago.

The group said its expected continuous strong growth from its oil and gas engineering, procurement and construction management arm via Ranhill WorleyParsons Sdn Bhd as it upgrades its abilities and benefits from its lower cost base compared with its international competitors.

“The group expects the revenue and profit contribution from the power business to increase in the coming years once its new 190MW combined cycle power plant becomes fully operational in December 2010. The first and second block of 65MW each came into operation in March 2010 and July 2010 respectively.

“As for the water division, the group also expects additional revenue and profit contribution once its plants in Xinxiang 50 million litres per day (MLD) and Hefei 30MLD become fully operational as both plants are currently in the final phase of testing and commissioning.

“The water treatment plant in Haldia 113.5MLD, Kolkata, India is also due to be fully operational in December 2010,” it added.

It added that it would continue to be exposed to fluctuations in the exchange rate of the US dollar and ringgit, especially in terms of payments of interest and principal on the US dollar-denominated bond.