Perwaja reports smaller net loss for second quarter

PETALING JAYA: Perwaja Holdings Bhd’s net loss in the second quarter ended Dec 31, 2016 narrowed to RM62.91 million from RM164.96 million a year ago.
In a filing with Bursa Malaysia yesterday, the company said the loss was due mainly to interest expense of RM34.7 million, depreciation charges and write-off of equipment of RM7.9 million.
Revenue for the quarter fell 56.17% to RM71,000 from RM162,000 a year ago. Its revenue for the quarter was derived from the training and education segment.
“The group’s main revenue contributor segment, the manufacturing and trading of steel billets has ceased operations since August 2013 when the gas and electricity supplies to the Kemaman Plant were curtailed,” it said.
For the six months ended Dec 31, 2016, net loss narrowed to RM125.30 million from RM227.04 million a year ago while revenue fell 50.32% to RM153,000 from RM308,000 a year ago.
Perwaja became a Practice Note 17 company in November 2013 and is in the midst of preparing a debt restructuring scheme with a view to reaching an agreement with its lenders to restructure the defaulted debts of the group.
As at June 30, 2016, the outstanding borrowings and bank overdrafts of the group amounted to RM1.12 billion.
Perwaja is required to submit its proposed regularisation plan by March 30, 2017.