PETALING JAYA: Construction company Eversendai Group Bhd, which has been involved in structural steel design and fabrication works on superstructures like the Burj Khalifa, has secured nine new projects worth RM1.1 billion.
In a Bursa filing today, the company announced the contract wins by its subsidiaries in the United Arab Emirates (UAE), Qatar, Saudi Arabia, India and Singapore.
The announcement saw the thinly-traded stock’s price climb 11.8% or 1 sen, closing at 9.5 sen, valuing the group at RM70.1 million.
The company is an integrated structural steel turnkey contractor and has worked on projects such as the Petronas Twin Towers (Tower 2), Kuala Lumpur International Airport, Merdeka PNB 118, Burj Al Arab, and the world’s tallest building Burj Khalifa.
Founder, executive chairman and group MD Nathan Elumalay owns 69.75% of the company indirectly via Vahana Holdings Sdn Bhd, according to its 2022 annual report.
Eversendai posted a net loss of RM359 million for the financial year ended Dec 31, 2022 (FY2022), or a loss per share of 46 sen.
Group revenue was RM905.3 million for FY2022, a 25.9% fall from RM1.22 billion reported a year ago.
“Increased losses are mainly due to after effects of the Covid-19 pandemic resulting in impairment of contract assets and receivables amounting to RM171 million, coupled with underutilisation of the fabrication facilities,” said Eversendai in its 2022 annual report.
Lingering disruptions from Covid-19 related issues resulted in Eversendai’s total fabrication capacity utilisation to be only 30% in 2022.
“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 Nathan.
Financial concerns
Eversendai’s independent auditors, Baker Tilly, had noted the existence of an uncertainty which may cast doubt on the group and the company’s ability to continue as a going concern in the financial statements for FY2022.
“The group and the company incurred a net loss of RM366,861,000 and RM302,956,000 respectively during the financial year ended Dec 31, 2022.
“As at that date, the group and the company’s current liabilities exceeded their current assets by RM168,333,000 and RM532,206,000 respectively,” said the auditors.
Nonetheless, Eversendai anticipates a gradual and steady recovery in 2023 and beyond with a strong emphasis and renewed focus on their core values.
“Eversendai’s tender book is estimated at approximately RM11 billion with interesting and highly prospective iconic landmark projects in the pipeline especially in Saudi Arabia and India,” said Nathan.