Loss-making ZELAN BHD [] recorded negative revenue from its continuing operations in Indonesia totaling RM39.2 million in the third quarter ended Dec 31, 2010 and warned of more losses in the current fourth quarter.
Explaining the negative revenue, Zelan said on Wednesday, Feb 16 this was due to a reversal made on the revenue recognised earlier as a result of additional foreseeable losses for the Indonesian project.
It said net losses for the 3Q were RM41.29 million compared with RM60.38 million. Loss per share was 7.33 sen versus 10.72 sen.
Zelan said there was minimal revenue recognised from other existing projects during the 3Q and warned it was expected to continue to make losses in the final quarter as its revenue was expected to come only from its existing secured order book.
It cautioned there was a possibility that liquidated ascertained damages of a maximum of about RM125 million may be imposed and the performance bond issued by the group to the owner of the project of RM132 million may be drawn down.
Explaining the negative revenue, Zelan said on Wednesday, Feb 16 this was due to a reversal made on the revenue recognised earlier as a result of additional foreseeable losses for the Indonesian project.
It said net losses for the 3Q were RM41.29 million compared with RM60.38 million. Loss per share was 7.33 sen versus 10.72 sen.
Zelan said there was minimal revenue recognised from other existing projects during the 3Q and warned it was expected to continue to make losses in the final quarter as its revenue was expected to come only from its existing secured order book.
It cautioned there was a possibility that liquidated ascertained damages of a maximum of about RM125 million may be imposed and the performance bond issued by the group to the owner of the project of RM132 million may be drawn down.
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