Rotary Engineering warns of loss

The expectation is mainly due to the SATORP project.

The Directors of Rotary Engineering Limited announced that based on information currently available, the company and its subsidiaries are expected to record a net loss for coming quarter and nine months ending 30 September 2012.

Accordingly, the Group is also expected to record a net loss for the financial year 2012. Problems were experienced at the tail end of the construction phase of the SATORP project in Saudi Arabia. This has resulted in the recognition of additional cost that significantly impacted the gross margin.

The announcement said that the cost has further escalated in the current quarter ending 30 September 2012, resulting in a net loss for the Group.