KUALA LUMPUR (Feb 20): Zelan Bhd's fourth quarter net loss deepened to RM38.33 million from RM18.53 million, as revenue shrank 44% on lower contribution from its engineering and consruction business from local projects.

Revenue for the quarter ended Dec 31, 2016 (4QFY16) came in at RM64.7 million versus RM115.85 million previously,  the civil engineering and turnkey contractor's bourse filing today showed.

The quarter's earnings performance was also affected by the provision of rectification of defect works of RM16.4 million, and dimunition in carrying value of long-term receivables of RM25.9 million, due to the deferment in the timing of expected recovery of the balances, Zelan said.

For the full FY16, the group fell into the red with a net loss of RM68.25 million versus a net profit of RM30.49 million in FY15, as revenue about fell 46% to RM222.37 million from RM412.97 million.

Its engineering and construction business contributed a higher loss after zakat and tax to the group of RM61.3 million, it said, compared to a profit after zakat and tax of RM39.3 million in FY15.

"The engineering and construction business segment contributed lower revenue principally due to the completion of the International Islamic University Malaysia (IIUM) project in FY15, and the absence of revenue contribution from UAE project due to termination of the contract in October 2015," it said.

Prospects-wise, it said the IIUM foundation centre project should be completed by May 2017, while revenue from its availability charges and asset management services is expected from the third quarter of this year.

It said it will continue to take steps to improve its performance via continuous assessment of internal and external risks, and by implementing strategies to control costs and to focus on achieving long-term sustainable growth.

Zelan's shares settled half a sen higher at 15 sen today, giving it a market capitalisation of RM126.7 million.