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Southern Steel Posts Largest Ever Quarterly Loss

Steel News - Published on Thu, 27 Feb 2020

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An impairment suffered by Southern Steel Bhd in its second quarter ended Dec 31, 2019 resulted in the group posting its biggest ever quarterly loss of MYR 334.96 million. This compares with a net loss of MYR 44.41 million in the year-ago quarter, and also marks the group’s fifth consecutive quarterly loss. The steel group said the impairment loss of MYR 258 million recognised in the quarter was on its plant and equipment including spares relating to the group’s hot rolled coil investment, after taking into consideration the award by a tribunal on two arbitration proceedings last November relating to a 2011 contract. Excluding this impairment loss, the group said its operating loss before tax would have been MYR 77 million, still higher than the corresponding quarter, due to lower sales volume and compressed margin arising from a lower selling price. Meanwhile, quarterly revenue contracted 27.2% to MYR 589.40 million, from RM809.51 million in 2QFY18.

For the first half of FY20, Southern Steel registered a net loss of MYR 380.54 million on lower revenue of MYR 1.24 billion. This compares with a net loss of MYR 42.63 million it had recorded in the corresponding period last year, on revenue of MYR 1.74 billion.

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Posted By : Rabi Wangkhem on Thu, 27 Feb 2020
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