Eversendai confident of achieving record performance in FY17

KUALA LUMPUR (May 25): Eversendai Corp Bhd said it is well on track to meet its RM2 billion revenue target for the financial year ending Dec 31, 2017 (FY17) and is confident of registering a record performance for the year, backed by its hefty orderbook.

Eversendai group chairman and managing director Tan Sri A K Nathan said the group has secured RM1.36 billion in contracts year-to-date, and will be securing more in the later part of the year.

"Our orderbook is about RM3.2 billion right now and there will be a few more contracts that we are going to secure over the next few months. We expect to showcase profits quarter by quarter going forward.

"We are close to achieving what we have targeted and we might even exceed the target. FY17 will be a far better year and it will be greater than what we have achieved since the inception of the company, it will be a record performance," he said at a press conference today.

The group's structural steel and construction division makes up about 87% of its total orderbook, while the balance is made up of its oil and gas (O&G)-related projects.

Nathan said prospects are bright for the construction business going forward, considering the huge opportunities still available in the Middle Eastern region — its traditional stronghold — as well as in India.

He pointed out that India is currently upgrading its building codes, requiring the use of composite structures in high-rise buildings, presenting more opportunities for Eversendai to expand its foothold in the country.

The group is also exploring new markets, and hopes to secure jobs in the UK and Australia in the future.

"We are exploring new markets, including the UK and Australia. We are hoping to secure one contract in the UK this year, related to steel structure works.

"However, venturing into Australia will take some time as we are still assessing the market. I don't think we will secure any contracts in Australia this year, potentially from next year onwards," said Nathan.

Currently, the group is tendering for RM13 billion in contracts for its construction segment and another RM12 billion for the O&G business.

Nathan said the group's O&G business has a solid foundation and is well-positioned for growth, once the sector rebounds.

"In my opinion, the O&G sector has to open up and grow. The sector has to bounce back, maybe in the next year or two. It cannot stay at the current level for long.

"We are still quite busy in the O&G sector, and Eversendai is well positioned to benefit when the industry turns around in the future," he said.

At 4.04pm, Eversendai rose 2.5 sen or 2.6% to 98.5 sen with 8.7 million shares traded. It has a market capitalisation of RM797.12 million. — theedgemarkets.com

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