Zelan net loss widens to RM35m in 2Q

KUALA LUMPUR: Zelan Bhd's net losses have widened to RM35.1 million for the second quarter (2Q) ended Sept 30, 2010, from RM13.8 million a year ago, it said in an announcement to Bursa Malaysia on Friday, Nov 19.

Its turnover plunged 91.3% to RM30.7 million from RM351.8, million due to lower contribution from projects carried out by its engineering and construction business unit, where the projects had incurred cost overruns due to rising material prices, under-budgeted items and additional costs arising from work delays offset by gain on sale of investments.

The group said it will continue to derive its revenue from its orderbook secured and "promising prospects" of projects which it is bidding for locally and abroad.

"Amidst signs of recovery in the economy, the group is gearing itself to secure new engineering and construction contracts in order to return to profitability," it said.