Ramunia whacked by industry cost pressures

Malaysian fabricator Ramunia posted net losses of 215.21 million ringgit ($62.2 million) for the third quarter ending in July as the group was hit by higher project overheads coupled with cost over-runs and losses.

Ramunia said it was also affected by disputed change orders and project bidding costs. This was a contrast from the 5.49 million ringgit net profit over the same period a year ago. Its revenue fell sharply to 81.32 million ringgit from 197.12 million a year ago. For the nine-month period, Ramunia posted a net loss of 208.43 million ringgit compared with net profit of 18.67 million ringgit in the previous corresponding period. Revenue fell to 271.68 million ringgit from 428.36 million rinngit due to the cancellation and delay of projects. Ramunia said the group would remain focused on the fabrication of offshore oil and gas related structures and other related works. It added emphasis would be placed on improving key internal processes and implementing cost rationalization programs to overcome the higher costs of production faced by the industry.
Read More