Eversendai returns to the black in FY23 with RM26.61mil net profit

KUALA LUMPUR: Eversendai Corporation Bhd has returned to the black with a net profit of RM26.61 million in the financial year ended Dec 31, 2023 (FY2023) compared with a net loss of RM361.51 million in FY2022.

Revenue in FY2023 increased to RM1.45 billion from RM905.30 million previously, it said in a filing with Bursa Malaysia.

Eversendai said the group recorded a gross profit of RM177.2 million in FY2023 against a gross loss of RM29.5 million in FY2022, mainly arising from the progress of the projects in the Middle East and improvement in the utilisation of its fabrication facilities, with utilisation averaging at 42 per cent in the current year as compared to 22 per cent previously.

For the fourth quarter of FY2023 (4Q FY2023), the company posted a net profit of RM57.85 million compared with a net loss of RM166.37 million, while revenue rose to RM519.05 million from RM300.98 million previously.

The improvement in 4Q FY2023 was attributable to increased operational performance and the reversal of provisions.

On prospects, Eversendai said, with the group’s current order book of RM1.4 billion and continuous reorganisation of resources with a strong focus on optimisation of costs and improving efficiency in its operations, it believes that the path of recovery is in motion.

“The group is also in the process of restructuring its borrowings to strengthen its liquidity position.”

Additionally, 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.

“The group is optimistic of its prospects to achieve improvised financial performance but remains cautious of the global geopolitical and economic uncertainties,” it added.

No interim dividend has been proposed for the current financial period ended Dec 31, 2023. – BK