Zecon shares up despite possible termination of hospital job

PETALING JAYA: Zecon Bhd’s share price rose 4.41% today despite a possible termination of its turnkey contract for the Petra Jaya Hospital in Sarawak.
The stock closed at 35.5 sen with 1.33 million shares done.
On July 5, Health Minister Dr Dzulkefly Ahmad said the Cabinet gave approval in principle for the termination of the RM495 million hospital project which has seen only 34.5% progress with merely six months left to its extended deadline of Dec 31. The project was supposed to have been completed on Nov 26, 2016.
Dzulkefly said the project will be taken over by the Public Works Department, which will also have the onus of deciding on a new contractor.
Zecon’s group CEO Syed Muzakir Al Joofre declined to comment when contacted.
It is understood, however, that the company has yet to receive any official notice on the contract termination. The hospital job was awarded to Zecon in April 2013, for a period of 42 months.
For the first nine months of the financial year ending June 30, Zecon registered a net loss of RM19.9 million against a net profit of RM 2.95 million attributable to Liquidated Ascertained Damages on one of its projects. Revenue grew to RM265.29 million from RM166.25 million.