Eversendai turns to profit in 4Q, sees recovery path 'in motion'

• The group registered a net profit of RM57.85 million, compared to a net loss of RM166.38 million in the previous year’s corresponding quarter.

KUALA LUMPUR (Feb 28): Eversendai Corporation Bhd said it returned to profitability in the fourth quarter ended Dec 31, 2023 (4QFY2023), thanks to the progress of its projects in the Middle East and increased utilisation rates of its fabrication facilities.

The group registered a net profit of RM57.85 million, compared to a net loss of RM166.38 million in the previous year’s corresponding quarter.

Quarterly revenue climbed 72.5% to RM519.05 million from RM300.99 million a year earlier, according to the group's bourse filing on Wednesday.

For the full year, Eversendai registered a net profit of RM26.62 million, compared to a net loss of RM361.52 million in FY2022. Meanwhile, revenue climbed 60.6% to RM1.45 billion from RM905.31 million.

Eversendai did not recommend any dividend for FY2023.

The group attributed its improved financial performance to increased operational performance, provision reversals and a higher utilisation rate of its fabrication facilities, averaging 42% compared to 22% previously.

Looking ahead, Eversendai said the recovery path is “in motion”, given its current order book of RM1.4 billion and a strong focus on improving cost optimisation and operational efficiency.

“The group foresees optimal utilisation of all its fabrication facilities with the existing order book and with the expected award of highly potential iconic projects from the tender book,” it said.

The group added that it is restructuring its borrowings to strengthen its liquidity position.

Nevertheless, it also cautioned that its performance could be affected by global geopolitical and economic uncertainties.

As at Dec 31, 2023, the group’s short-term borrowings stood at RM1.03 billion, while long-term borrowings amounted to RM34.86 million, with cash and bank balances of RM128.25 million.

Eversendai shares closed unchanged at 16 sen, valuing the group at RM125.09 million.

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