Eversendai posts 286% Q3 earnings jump to RM20mil
KUALA LUMPUR: Eversendai Corp Bhd recorded a 286% jump in third quarter earnings to RM20.83mil from the previous corresponding quarter on the back of revenue that grew 21% to RM449.3mil.
Year to date, the group recorded a net profit of RM56.7mil compared to a net loss of RM64.43mil in the same period last year, with revenue growing 6% to RM1.31bil.
The group had posted losses in financial assets in the previous financial period, which resulted in the net loss.
Earnings per share for the nine months so far this year stood at 7.32 sen compared to a loss per share of 8.33 sen in the year-ago period.
According to Eversendai’s earnings announcement, its subsidiaries in the Middle East generated 56.9% of group revenue via its structural steel arm.
However, it is expecting higher contributions from its oil and gas segment moving forward.
“The oil and gas segment made up 16.5% of the Group’s revenue and it is expected to grow further with the recent 9COM accreditation that prequalifies its Ras Al Khaimah yard for the fabrication and construction of Offshore Platforms and Jackets for Saudi Aramco.
“This opens more avenues for Eversendai to collaborate with Saudi Aramco who is pro- jected to invest more than US$300bil over the next 10 years,” it said.
“Moving forward, we are working towards expanding our presence in Singapore, United Kingdom and Australian markets. Expansion into markets with stronger currency is projected to make the bottom line stronger,” said Tan Sri A K Nathan, executive chairman and group managing director.
The group has secured RM1.6bil new contracts for the year so far, bringing its order book to about RM2.7bil. The lion’s share of the contracts are from the Middle East (44.1%), followed by India (21.8%) and Southeast Asia (19.1%) and the remainder from the oil and gas sector (15%).