Posted on 02 Dec 2015
Eversendai Corp Bhd recorded a fourfold increase in net profit to RM14.58 million for the third-quarter ended Sept 30, 2015, compared to RM2.1 million posted a year ago, driven by higher margins from its present projects.
The engineering and construction services firm that has presence in the Middle East, India and Malaysia said its revenue improved to RM471.5 million from RM241 million a year before.
The company in a statement yesterday said the group’s revenue continues to be driven by its Middle East operations which account for 70% of its entire revenue, with the steel power plant projects in Malaysia contributing 20.8% and construction industry in India 9.2%.
As at September 2015, the group had secured approximately RM1.4 billion in new contracts and its orderbook stood at RM1.8 billion.
With over 20 ongoing projects, it said some of the group’s most notable projects this year include the 12 Waves Warehouse in Batu Kawan, Penang, two separate packages for the Petronas Refinery and Petrochemicals Integrated Development project in Pengerang, Johor, Dhirubhai Ambani International Convention and Exhibition Centre and Statue of Unity in India.
“The team continues to focus on the strong operational performance which has placed us in a good position to capitalise on the current business environment. We will continue to focus on delivering our business goals for the last quarter of 2015,” said executive chairman and group MD Tan Sri AK Nathan.
“For the coming financial year, the group will continue to bid for new projects and intensify efforts to grow in its existing and new markets,” he said.
For the nine-month period, Eversenda i’s net prof it increased to RM48.1 million from RM21.2 million posted last year while revenue advanced to RM1.3 billion compared to RM694.3 million. In an email reply to The Malaysian Reserve yesterday, Eversendai said the company has put bids worth RM25 billion locally and abroad.
The company said the bids worth RM13 billion are for projects in the oil and gas (O&G) sector.
“With a strong orderbook and new potential projects, we expect the last quarter to be positive. We are also confident with the future prospects,” it said.
Besides contracts from its steel engineering, fabrication and building construction businesses, it said the group’s expansion into the O&G sector in 2013 has resulted the company securing contracts for the construction of both onshore and offshore O&G processing plants, production supporting facilities and equipment.
On the geopolitical uncertainties in the Middle East, it said Eversendai does not foresee any negative impact as the countries where it has operations are free from such exposure.
