Rig-maker takes another loss

Honghua Group, a Sichuan-based producer of land-based oil and gas drilling rigs, saw its share price dive after it said last Friday it expected to post a net loss for last year after a loss of 127.34 million yuan (HK$149.09 million) in 2009. Its shares closed 13 per cent lower at HK$1.07. Honghua blamed the loss on weaker than expected demand, yuan appreciation and a delay in being paid for a more than 1 billion yuan order, held back because the end user in South America failed to raise sufficient funds to pay for the rigs, a spokesman said.