Saturday, February 26, 2011

AZRB posts RM83m net loss in 4Q after Alfaisal University job terminated

KUALA LUMPUR: AHMAD ZAKI RESOURCES BHD [] (AZRB) posted net loss of RM83.06 million in the fourth quarter ended Dec 31, 2010 compared with net profit of RM5.13 million a year ago following the termination of the Alfaisal University Campus project in Riyadh, Saudi Arabia.

It said on Friday, Feb 25 that revenue shrank to RM52.62 million compared with RM105.56 million a year ago. Loss per share was 30.03 sen compared with earnings per share of 1.86 sen.

For the financial year ended Dec 31, 2010 its net loss was RM61.28 million compared with net profit of RM20.76 million in FY09. Its revenue was RM431.34 million compared with RM459.40 million.

It said the group's results were severely affected by its exceptional loss of RM94 million from the termination of the Alfaisal University congtract. Despite the improvement of by RM12 million in its pretax for FY10, the results were impacted by the termination which caused a net loss of RM48 million.

In the third quarter, AZRB had recognised RM44.68 million arising from the liquidation of performance and advance bonds by the King Faisal Foundation (KFF) for the campus development on Sept 1, 2010 as an amount receivable from the foundation instead of an expense of the basis that AZRB has a contractual right to recoup the bonds.

In the fourth quarter, AZRB had included in its book a total of RM99 million loss sustained from the termination of the Alfaisal University contract'' after due assessment on all aspects of claims to be put forward to KFF via the arbitration process.

'This has resulted the group suffered a net loss before tax of RM48 million for the financial year under review,' it said.

However, AZRB said despite the substantial loss suffered from its Alfaisal University, it viewed the loss from its Saudi operations as a one-off isolated event due to the exceptional circumstances with no further significant cash outflows expected.

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