KUALA LUMPUR: KUALA LUMPUR: Eversendai Corporation Bhd rebounded to profitability in the fiscal year ending Dec 31, 2023 (FY2023), recording a net profit of RM26.61 million compared to the RM361.51 million net loss in FY2022, driven primarily by its ventures in the Middle East.
Revenue for FY2023 surged to RM1.45 billion from RM905.30 million the previous year, it said in a filing with the stock exchange today.
Eversendai highlighted a gross profit of RM177.2 million in FY2023, a significant turnaround from the RM29.5 million gross loss in FY2022, largely attributable to progress on Middle East projects.
Utilisation rates across all seven steel fabrication yards also saw improvement, averaging 42 per cent in FY2023 compared to 22 per cent the year before.
The state-of-the-art fabrication yards are located in Malaysia, Dubai, Sharjah, Qatar and India, with an annual capacity of 150,000 tonnes.
Looking ahead, Eversendai, founded in 1984 by Tan Sri AK Nathan, expressed confidence in its recovery trajectory, citing a current order book of RM1.4 billion.
The company emphasised ongoing efforts to reorganise resources, optimise costs, and enhance operational efficiency.
Additionally, Eversendai is restructuring its borrowings to fortify its liquidity position, and is aiming for optimal utilisation of its fabrication facilities.
The company said that while it is hopeful about its chances of achieving better financial performance, it is nevertheless wary of global geopolitical and economic uncertainty.
Eversendai specialises in turnkey contracts and has delivered a wide range of projects, including high-rise buildings, power plants, as well as process and industrial plants, infrastructure, and composite structures across Asia and the Middle East.
The company has constructed some of the world's most iconic landmark structures, including Burj Khalifa in Dubai, Petronas Tower 2 in Malaysia, Khalifa Olympic Stadium in Qatar, Kingdom Centre in Saudi Arabia and Republic Plaza in Singapore.
In the fourth quarter of FY2023 (4QFY2023), Eversendai reported a net profit of RM57.85 million, a notable contrast to the net loss of RM166.37 million in the same period previously, with revenue climbing to RM519.05 million from RM300.98 million.
The Middle East segment contributed the largest portion of revenue in 4Q FY2023, accounting for RM407.3 million, or 78.5 per cent, followed by the India region with RM57.9 million (11.2 per cent) and Southeast Asia with RM53.8 million (10.4 per cent).