KUALA LUMPUR (May 15): Construction engineering group Eversendai Corp Bhd said it had secured nine projects worth a combined RM1.1 billion in the United Arab Emirates, Qatar, Saudi Arabia, India and Singapore.
The group, which is involved in structural steel and mechanical fabrication, said it anticipates a “gradual and steady recovery” in 2023, with the current backlog of new order books secured and a positive market outlook in key geographical regions where it operates.
Eversendai said it had an outstanding tender book of RM11 billion, with “interesting and highly prospective iconic landmark projects”, especially in Saudi Arabia and India.
“The group has embarked on a comprehensive and thorough internal review of cost estimates and margins of all the ongoing projects to ensure prudent recognition of profits, and further strengthening operational and management controls,” said Eversendai group managing director Tan Sri A K Nathan Elumalay.
“The focus has been on solidifying the business and concentrating on the geographies where we have a strong competitive advantage, and opportunities for growth,” Nathan said.
In its annual report published on April 28, Eversendai said there are “high chances” of the group securing some of the projects in Saudi Arabia under the kingdom’s Vision 2030 programme.
The country has rolled out several development projects, including the King Salman Park, Red Sea Development, NEOM smart city, Qiddiya entertainment megaproject and the AMAALA property megaproject, which consists of potential steel works, Eversendai said.
Its ongoing projects in Saudi Arabia include the King Salman Park Loop Bridges and O&M building, and NEOM-Sindalah Island Cluster-I.
Eversendai had its weakest financial performance in the financial year ended Dec 31, 2022 (FY2022), as net loss widened to RM359.39 million from RM137.08 million in FY2021, as Covid-19 dragged its fabrication capacity utilisation to a record low of 30%.
Full-year revenue, too, fell to a record low of RM897.93 million, from RM1.22 billion previously, a decline of 26.54%.
The group had cash of RM110.56 million against short-term borrowings of RM984.37 million and long-term borrowings of RM39.32 million. Retained losses stood at RM474.16 million.
Shares in Eversendai have retreated through the Covid-19 pandemic, and touched a new low of six sen this month. The counter traded up half a sen at nine sen at the noon market break on Monday (May 15), giving the group a market capitalisation of RM66.39 million.
Source: TheEdge - 16 May 2023
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