Eversendai upbeat on prospects after FY17 turnaround

Posted on 01 March 2018

Source: The Edge

Steel and construction outfit Eversendai Corp Bhd, which returned to black in its financial year ended Dec 31, 2017 (FY17), is upbeat about its prospects this year as it continues to build steady growth in terms of revenue and profit.

In a statement yesterday, the group also announced RM261.7 million worth of new project wins in the Middle East, specifically in Qatar and Dubai.

In Qatar, it has secured three new steel installation jobs for a stadium and a 7-star hotel tower. In Dubai, it has won four construction projects involving a mixed-use 77-storey twin tower, a steel sky bridge, a shade structure and a landmark new urban district.

“We are very confident of achieving higher wins and profitable returns hereafter. We are focusing on further strengthening our operations in the current markets where we operate and streamline our cost control to improve profits.

“With a fair balance of strength and resilience, prudence and sound enterprise risk management, we are well-positioned to continue our confident performance to deliver strong margin returns in 2018,” said Eversendai executive chairman and group managing director Tan Sri A K Nathan.

Eversendai posted a net profit of RM29.81 million in the fourth quarter ended Dec 31, 2017 (4QFY17), compared to a net loss of RM214.46 million a year ago, as various business units registered improved operating performance.

Quarterly revenue jumped 49% year-on-year to RM519.22 million from RM348.79 million, its Bursa Malaysia filing showed.

For the full FY17, Eversendai posted a net profit of RM86.51 million versus a net loss of RM278.88 million a year ago, as revenue grew 16% y-o-y to RM1.83 billion from RM1.58 billion.

Its core business of structural steel remains the key contributor to bottom line and made up 68.3% of revenue, while other businesses, which include power plant, civil construction and oil and gas contributed the remaining 31.7%.

“Geographically, operations in the Middle East generated 69% of Eversendai’s revenue, followed by the second largest contributor, 14.5% from India,” Eversendai said. 

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