Eversendai expects good earnings next year
KUALA LUMPUR: Eversendai Corp Bhd expects a healthy showing next year, given that some of its new projects have only just started, says its chief.
Founder and executive chairman Tan Sri A.K. Nathan said the group's stellar project execution and strong cash flow-generating ability, coupled with an order book of around RM1.7 billion, provides clear earnings visibility for the next two years.
Eversendai, a structural steel turnkey and power plant contractor, is tendering for RM8 billion to RM10 billion worth of projects and expects to land some of the jobs soon, Nathan told Business Times.
Early this year it won a US$107.8 million (RM344.9 million) job to undertake structural steel works on the US$3.2 billion Midfield Terminal Project at Abu Dhabi International Airport.
For the first six months of its current financial year ending December 31 2013, Eversendai posted lower net profit of RM40 million versus RM57.6 million in the same period last year.
Eversendai is not dependent on a vibrant economic environment to do well as being a niche player in the market, its expertise is always on the hunt by corporate giants.
Earnings fell due to lower gross profits of 16.7 per cent and 73.9 per cent recorded in its Middle East and India segments in the second quarter ended June 30. Gross profit in the Malaysian segment rose 187.1 per cent, driven by its Manjung and Tanjung Bin 4 power plant projects.
"The prospects for Eversendai look bright. The Middle East is abuzz with construction activities and India has new developments. We expect gross profits to improve," Nathan said.
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