Eversendai Forecasts Over RM1.8b New Contracts In 2017, Says Nathan
P Prem KumarTuesday, January 3, 2017
Nathan says Eversendai is optimistic of achieving the RM 2b revenue target, thanks to the existing orderbook of RM 2.7b and the prospects of new contracts..
Eversendai Corp Bhd expects to secure new contracts worth more than RM1.8 billion this year as the currently loss-making structural steel turnkey opor aims to reverse its fortune.
Eversendai executive chairman Tan Sri AK Nathan said business potentials are brighter this year, compared with 2016, as more infrastructure projects and oil and gas (O&G) related projects are expected to be awarded in the first-half of 2017.
The company’s active tenderbook this year is estimated at RM22 billion, of which RM12 billion is expected to consist of Eversendai’s core business of structural steel const ruct ion, while the remaining RM10 bi l l ion would be O&G-related.
“Our tenderbook last year was RM22 billion, from which about RM10 billion is still alive...potentials are brighter,” he told The Malaysian Reserve in a telephone interview.
Nathan said Eversendai would announce some big contract wins in the first three months of this year, to start the year “with a bang”.
Among notable projects expected to be dished out this year are the 2022 FIFA World Cup projects in Qatar, as well as the Expo 2020 in Dubai, both in the Middle East region, where Nathan always claims that Eversendai has a remarkable track record.
“In 2015, we created record in terms of new contracts worth RM1.7 billion. While I was thinking that was the best year, we garnered new contracts worth RM1.8 billion last year.
“With new business potentials, we are sure that we will break that number this year. We will do better than the last three years,” he said.
This year would be an important year for Eversendai to realise the aspirations of reaching RM2 billion in annual revenue by year-end.
Nathan said Eversendai is optimistic of achieving the RM2 billion revenue target, thanks to the existing orderbook of RM2.7 billion and the prospects of new contracts. “Moving forward with newly secured projects in the Middle East, India and South- East Asia, this has strategically positioned Eversendai to perform well in 2017.”
For the first nine months of 2016, Eversendai registered a net loss of RM64.43 million compared to a net profit of RM48.08 million in the corresponding period in 2015.
Revenue also fell to RM1.23 billion from RM1.3 billion previously.
Among the new projects secured last year were The Royal Atlantis in Dubai; Al Wakrah Bypass — ITS Gantries in Qatar; Rupa Renaissance, Mumbai; and Ameerpet and MGBS Stations, Hyderabad in India; Jimah Project: Steam Turbine & Centre Control building in Malaysia and New State Courts in Singapore.
With over 20 significant ongoing projects, the Middle East region continues to drive the group’s revenue for the first nine months of 2016, by contributing 57.2% of the total revenue from their operations in the United Arab Emirates, Saudi Arabia and Qatar.
The balance of the revenue was derived mainly from the operations in Malaysia and Thailand (12.5%), India (8.8%) and the O&G segment (21.5%).
He said from the beginning of 2016, Eversendai focussed on improving the group’s profits, by strengthening operational performance.
“We are growing our profits as well as volume. I am sure we will emerge to be a profitable company again this year.
“The loss-making position was only temporary due to the impairments caused by a bad investment in Singapore. We have settled the payments. So, it is out from dragging our balance sheet,” he stressed.
Nathan was referring to Eversendai’s RM74 million investment in Singaporebased Technics Oil & Gas Ltd in November 2012. He had admitted that the investment was “a mistake” and will not be repeated.
Technics was a victim of the global O&G bust that contributed to Eversendai writing off RM101.7 million in impairment costs as of September 2016, which dragged the company’s financial performance.
AK said Revenue RM 2B this year. If Sendai can manage to get 5% net profit margin. Then RM100mil profit this year. AK confident should be reflect by announce At lease 2 cent dividend this year.
Al Wahda Arches taking shape at West Bay Photo by Baher Amin
The Peninsula Online
Doha: Al Wahda Arches project is progressing at fast pace and is expected to be an iconic landmark when complete. The arches are coming up at the old Arch roundabout (Rainbow R/D).
As part of the Lusail Expressway works Arch roundabout is being converted into a three-level interchange including a dual three-lane underpass from Al Dafna area to Lusail. It will comprise of a single point interchange at the ground level for the Arch traffic and three lane directional link at level 1 from Lusail Expressway to the Central Business district. In addition, the project will feature vital iconic landmarks.
Located at the southern end of the under-construction Lusail Expressway, on the site of the old Rainbow (Arch) roundabout the arches are being built for Ashghal by Eversendai Qatar.
Eversendai has said in an earlier statement that the bigger arch of the Al Wahda Arches will have a length of 146.52 metres and a maximum height of 98.79 metres while the smaller arch will span across 139.84 metres in length with a maximum height of 77.56 metres. The suspended visitors' centre will measure 85 metres in length and 21 metres in height.
Agree with John Lu. Just ignore this calvintaneng. This troll moves from counter to counter making a nuisance of himself. His lack of class speaks for itself in the way he writes. Just ignore this troll.
In Oct last year when Binapui n Sendai at nearly the same price, I asked joker Calvin Tan which counter better. He said Binapui is top class n Sendai is Holland counter. Straight away I got the clue n bot Sendai. Becos I know this joker has no luck in share market becos he wearing his glass terbalik. Proven now in Sendai, n his stock pick also terbalik.
Close at day high 0.74, above 250SMA, going to test year high 0.77 tomorrow, very bullish! Forget about him la, focus on this god, Shen dai. Bopi bopi pray more fortune come.
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zidane_179
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Posted by zidane_179 > 2017-01-19 15:50 | Report Abuse
How to read MR K comment?