Business

Eversendai slips into the red in Q1

Despite higher revenue in the first quarter, the company recorded a loss.

Syndicated News
Written by Syndicated News

KUALA LUMPUR — May 30, 2016: Eversendai Corporation, which has secured RM700 million worth of new projects in the first quarter of this year, recorded a pre-tax loss of RM RM49 million for the period against a profit of RM20.2 million a year ago.

This is despite the group generating higher revenue of RM440.7 million from RM402.8 million previously.

“The group’s loss for the first quarter was mainly due to higher loss resulting from fair value of financial assets and unrealised foreign exchange loss, without which there would have been a profit of RM 24.2 million,” Eversendai told Bursa Malaysia today.

The Middle East segment continues to drive the group’s revenue by contributing 53.7 per cent of the total from operations in the United Arab Emirates, Saudi Arabia, Qatar and the Commonwealth of Independent States. The balance was derived mainly from operations in India (10.3%) and Malaysia (9.8%).

Executive chairman and group managing director Tan Sri A.K. Nathan said Eversendai is already seeing progress in its decision to move and expand into the oil and gas sector which contributed 26.2 per cent to the group’s revenue compared to 14.7 per cent in the first quarter of 2015.

Eversendai’s currently has an order book of RM2.2 billion. It is optimistic about its future prospects based on the announcement of several major projects secured in the first quarter.

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