KUALA LUMPUR: Zelan Bhd, which returned to the black in the 2014 financial year, still needs to strengthen its financial position within the next 2-3 years before paying out dividends to shareholders.
Managing Director, Adnan Mohammad, said while the engineering and construction company had started registering profits, it was still posting negative retained earnings.
“We have to address that issue first before we can give out dividends to shareholders, which is a pressing issue because shareholders are looking for returns.
“Within the next 2-3 years, we still have to strengthen Zelan’s financials, however, if all our biddings materialise that would be a different story,” he told a press conference after the company’s annual general meeting here today.
On tenders, Adnan said Zelan was actively bidding for projects locally, including the Pengerang projects in Johor to sustain its orderbook.
Zelan’s orderbook now stands at RM1.1 billion, representing four ongoing projects that will keep it busy until 2017.
Among Zelan’s ongoing projects include the construction of a drawbridge in Terengganu for the East Coast Economic Region Development Council and the material offloading facilities jetty for Petronas Refinery and Petrochemical Corporation Sdn Bhd.
“Our track record speaks for itself and this should put us in a strong position to secure more jobs.
“Moving forward, we hope to secure more projects and our advantage is that we have the experience with building ports such as the Port of Tanjung Pelepas (PTP),” he added.
PTP is Malaysia’s largest container terminal and is located strategically at the confluence of one of the world’s busiest straits, the Malacca Straits. – Bernama