Zelan share price tumbles on higher losses in Q4

PETALING JAYA: Zelan Bhd's share price hit a low of 11 sen this morning after its losses widened in the fourth quarter ended Dec 31, 2017 to RM59.10 million from a net loss of RM37.70 million a year ago, mainly attributable to RM43.4 million losses from the Meena Plaza project and higher unrealised foreign exchange loss of RM5.7 million from oversea subsidiaries.
As at 11.02am, Zelan’s share price was down half a sen to 12 sen with 3.6 million shares changing hands.
Zelan’s revenue fell 73.3% to RM17.39 million in the quarter compared with RM65.11 million in the previous year's fourth quarter mainly due to the completion of major phases of the Drawbridge project, Bukit Bintang City Centre project and Material Off-Loading Facility Jetty project.
For the full year period, the group's net loss was slightly lower at RM67.52 million compared with a net loss of RM67.62 million in the previous year, while revenue fell 68.1% to RM71.07 million RM222.79 million due to the engineering and construction business segment that saw lower revenue mainly because of the completion of three projects.