Eversendai Rebounds, Positions For Growth With RM15 Bln In Bids

By M.Saraswathi

KUALA LUMPUR, Feb 26 (Bernama) -- Structural steel and engineering firm Eversendai Corporation Bhd has made a strong turnaround from the crippling impact of the COVID-19 pandemic, with revenue surpassing RM2 billion for the first time and robust profitability as it bids for projects worth some RM15 billion globally.

The company announced revenue for 2025 rose by 71.1 per cent, or RM887.1 million, to RM2.14 billion from RM1.25 billion previously, mainly due to all ongoing projects progressing as per schedule, continuous efforts to reduce operating expenses, and reduced finance costs and foreign exchange gains.

Speaking to Bernama, executive chairman and group managing director Tan Sri AK Nathan Elumalay said the group’s financial performance marked its strongest recovery since the pandemic, which had pushed the company into heavy losses due to client defaults, bankruptcies and project disruptions.

“Eversendai went through a tough period during and after COVID-19. There were huge losses as two client companies in the United Arab Emirates (UAE) went bankrupt, and some companies vanished. We did not have the income, but we had to continue paying salaries and other expenditures.

“We lost a huge amount of money overall,” he said, adding that the group wrote off nothing short of between RM350 million and RM400 million during the period, dragging its earnings into negative territory. 

Recalling the treacherous terrain brought about by the pandemic, he said, there was a time when he was not sure he would be able to turn the business around, especially amid the many uncertainties and challenges.

“It is one of the worst periods of my life, but the last two years have been great, but nothing came easy,” said Nathan, who is a self-made entrepreneur and founder of Eversendai.

Nathan attributed the turnaround to tighter cost controls, improved productivity and an unwavering commitment to safety, quality and timely delivery.

Eyes Record Order Book, Bidding For More

The past two and a half years have been positive for Eversendai.

Besides revenue, net profit surged to RM110.41 million, its third-best since it was listed in 2011, compared with RM13.40 million the year before, he said.

The recovery was underpinned by a record order book of RM6.7 billion announced previously.

Currently, Eversendai holds RM4.6 billion worth of contracts in hand, with several new awards expected this year.

“Going forward, Eversendai is well placed. I won’t be surprised if we hit beyond the RM6.7 billion again. Both the revenue and net profit for 2025 are the highest ever in my career,” said Nathan, who was visibly elated in expressing confidence in the group’s prospects.

“I believe we have shocked the market with the number of contracts we were able to secure,” he said.

He said the company would be able to repeat the success of 2025 as it has tendered for projects totalling about RM15 billion, spanning Singapore, India and the Middle East, particularly the UAE and Saudi Arabia.

“We don’t win jobs just because we are the lowest bidder. Clients are willing to pay a premium because they know when we make a commitment, we deliver,” he said.

Expansion, People

Beyond its core structural steel business, Eversendai is expanding into data centre projects in the UAE and India, as well as wind farm developments in Europe.

The group is currently executing one wind farm project in Europe, where three modules are being fabricated at Eversendai’s Ras Al Khaimah facility in the UAE for export to Spain before installation in Germany.

He said the company is also looking to elevate its role to that of an engineering, procurement and construction (EPC) contractor in the wind energy sector, citing significant opportunities in Europe.

On possible expansion in Malaysia, he said Eversendai has purchased land in Johor within the Johor-Singapore Special Economic Zone (JS-SEZ), and construction for a new plant will start within the next two months.

“We believe it will be up and running in a year and a half. This is mainly to cater for the jobs we have secured in Singapore,” he said.

Founded more than four decades ago, Eversendai employs over 15,020 staff and workers across its operations. 

“Three months ago, we had 14,200 staff and workers,” he said.

With a strengthened balance sheet, a solid order book and an active tender pipeline, Nathan said the group is now focused on improving margins further and working towards becoming a consistent dividend-paying entity.

“We are now well-positioned, and the future is exciting,” he added.

-- BERNAMA