Kinsteel loss cushioned by higher steel prices, productivity

PETALING JAYA: Kinsteel Bhd saw a narrowed net loss of RM8.26 million for the second quarter ended Dec 31, 2016 versus RM16.82 million in the previous corresponding period, due to improved steel prices and higher productivity at its subsidiaries.
Revenue was down by 0.6% from RM74.3 million to RM73.85 million.
The steel maker told Bursa Malaysia that its prospects will continue to be challenging and are highly dependent on the successful implementation of the proposed restructuring scheme with its financial lenders and major creditors.
The group is undertaking a debt restructuring exercise to address its liquidity issue.
Kinsteel said it needs to operate profitably in order to generate sufficient cash in the future to fulfil its obligations as and when they fall due, and financial support from the lenders and shareholders.
For the first half of the year, its net loss narrowed to RM19.73 million from RM35.32 million. Revenue fell 2.8% from RM128.8 million to RM125.24 million.