This article first appeared in The Edge Financial Daily, on May 18, 2016.

KUALA LUMPUR: Zelan Bhd is eyeing RM4 billion worth of contracts this year, comprising local infrastructure projects, as it winds down its overseas operations. Its managing director Adnan Mohammad said despite the current challenging economy, Zelan is still participating in tenders for local infrastructure projects.

“But whether we secure them or not depends on the tender price[s].

“Up until April, we have submitted over 10 tenders, valued [at] more than RM4 billion. Some of the contracts being tendered out are for works for the new highways, and also infrastructure projects for Petronas’ (Petroliam Nasional Bhd) Rapid (Refinery and Petrochemical Integrated Development) project,” he said, adding that the group’s order book currently stands at RM342 million.

Adnan said management is focusing on its local operations, as the group aims to eventually wind down its foreign operations.

“We have legacy contracts in India and Indonesia. There are some residual issues to be finalised for the companies there, before we can close down operations in the two countries.

“There are large issues to be dealt with in relation to the Abu Dhabi project, arising from non-payment and interference by the client. This may only be sorted out within the next one to two years,” he said.

The group is looking to grow its asset facility management business, consisting of a maintenance contract for International Islamic University Malaysia, which provides some recurrent income.

“We set up a special purpose vehicle, and we are slowly building our portfolio. The contributions are not that significant, but we would like to grow the business,” said Adnan.

He also said Zelan’s current focus is to reorganise its operations before considering any big venture.

For the fourth quarter ended Dec 31, 2015 (4QFY15), Zelan posted a net loss of RM18.53 million, against a net profit of RM12.57 million in the previous year, despite revenue rising 29% to RM111.97 million from RM86.86 million.

For FY15, net profit fell to RM30.49 million from RM38.48 million a year earlier, while revenue almost doubled to RM412.97 million from RM210.97 million.