Eversendai 3Q net loss widens to RM96.3mil

KUALA LUMPUR: Eversendai Corp Bhd has taken measures to address short-term liquidity challenges to ensure that the group begins to rebound from the effects of this global downturn and the continued sustainability and development of the group.

“In due course, the group is exploring additional alternative funding options including restructuring of group’s assets, to further strengthen its liquidity position and to maintain the progress.

“With these combined efforts, going forward, the group is optimistic of its future prospects but remains cautious of the global geopolitical and economic challenges,” the steel structure specialist said in a filing with Bursa Malaysia.

Eversendai said as at the date of this financial report, the group‘s order book stood at RM1.66bil.

In the third quarter ended Sept 30, Eversendai’s net loss widened to RM92.3mil against RM14.8mil last year.

The increase in loss is mainly due to under-utilisation of the group’s fabrication facilities, with utilisation averaging at 21%, resulting in under recovery of fixed costs, coupled with adjustment of contract values and

margins for some projects, finance costs and provision for impairment of receivables.

The loss during the current quarter is also as a result of unrealised forex loss of RM46mil arising from the strengthening of US dollar against the ringgit.

Revenue for the quarter fell 33% to RM205.9mil from RM307.9mil in the same quarter last year.

Year-to-date, it posted a net loss of RM194.14mil on revenue of RM604.32mil.

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Eversendai , liquidity , funding , restructuring


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