Ramunia Holdings Bhd will have to brace for tougher times ahead this year after it reported higher-than-expected losses of RM280mil for its financial year ended Oct 31, 2008 (FY08), mainly due to additional provisions, analysts said.
The net loss was a stark contrast compared to the RM20.66mil net profit posted in its financial year 2007 (FY07).
Revenue fell to RM360.86mil compared with RM612.87mil.
Loss per share was 54.14 sen.
For the fourth quarter, it posted a net loss of RM71.4mil on the back of RM89.18mil in revenue.
At the pre-tax level, it posted RM105.31mil in losses in FY08.
Net asset per share was 28 sen compared with RM1.13 a year ago.
Ramunia’s net loss of RM280mil for FY08 was higher than analysts’ estimates of RM229.6mil as the company made further provisions for cost overruns and foreign exchange losses.
The additional provisions disappointed analysts after Ramunia’s management had earlier stated there would be no further provisions.
An analyst with a local research house said he was disappointed with the lack of transparency from Ramunia’s management over the additional provisions in the fourth quarter.
“We are not sure when the provisions will end,” he said, adding that there could be a re-rating for the company on the entry of shareholders like Petroliam Nasional Bhd or if Ramunia managed to secure new contracts.
Losses in FY08 were due to project cost overruns, foreign exchange losses, provision for diminution of investment and cost incurred for cancelled projects.
Other factors included higher operating cost incurred from its yard modernisation in anticipation of an increase in work orders.
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