RAMUNIA Holdings Bhd (7206), which has just sold its main asset, expects to be back in the black and free from the PN17 label this year as it partners shipbuilder Coastal Contracts Bhd.
It plans to continue with the engineering business, servicing the oil and gas industry, despite selling its fabrication yard in Johor to Sime Darby Bhd for RM515 million.
Loss-making Ramunia was classified as a PN17 company on February 25 this year as its shareholders' fund fell below half of its paid-up capital. The label typically identifies financially troubled firms.
The company has until March 1 next year to come up with a revamp plan, director Too Kok Leng told reporters after a shareholders' meeting in Kuala Lumpur yesterday.
On February 28, Ramunia signed a memorandum of understanding with Coastal's wholly-owned unit, Pleasant Engineering Sdn Bhd, to undertake oil and gas projects.
Coastal offers a wide range of marine services and vessels to worldwide clients of different industries and has a fabrication yard in Sandakan, Sabah.
"It is a good marriage. We have the licence and expertise, and Coastal has a yard. So we are complete in that sense.
"We are looking at some fabrication work as well as onshore and offshore engineering projects by Petronas (Petroliam Nasional Bhd) and the private sector," Too said.
In the year ended October 31 2009, Ramunia posted a net loss of RM53 million.
"Our first quarter earnings were positive. We made a net profit of RM3.42 million, and we hope to keep that going," Too added.
Chairman Datuk Azizan Abd Rahman said the current management was looking at various opportunities.
Ramunia will also meet its creditors on May 7 to settle its borrowings.
The group has outstanding loans of RM347 million, money it borrowed to modernise the yard, and it is seeking a haircut from lenders.