Eversendai's lift boat, Vahana Aryan
KUALA LUMPUR: Eversendai Group said 2023 is a year of recovery for the group with the current backlog of new orderbook secured and an overall positive outlook in the key geographical regions in which it operates.
"The group is confident to overcome the challenges to recover with our team who are strongly committed to re-shape the Eversendai Group with perseverance and persistence in becoming a stable and sustainable group going forward.
"With the new projects, opportunities in the respective regions will further enhanced our growth,” said group managing director Tan Sri AK Nathan in a statement.
According to the group, its subsidiaries have secured nine new projects worth RM1.1bil in the United Arab Emirates (UAE), Qatar, Saudi Arabia, India and Singapore.
It said its tender book is estimated at about RM11bil with iconic landmark projects in the pipeline, especially in Saudi Arabia and India.
Meanwhile, AK Nathan said the group has embarked on a comprehensive and thorough internal review of cost estimates and margins of all the ongoing projects to ensure the prudent recognition of profits, and further strengthening operational and management controls.
"The focus has been on solidifying the business and concentrating on the geographies where we have a strong competitive advantage, and opportunities for growth," he added.
The group said it faced challenges and a slowdown in its key markets in 2022, coupled with lingering disruptions from Covid-19-related issues.
The disruptions brought the group's total fabrication capacity utilisation down to only 30%, which was reflected in the group's financial results in 2022.
Eversendai's independent auditor, in a May 5 filing with Bursa Malaysia, expressed concern about the loss-making group's ability to continue as a going concern.
Messrs Baker Tilly Monteiro Heng PLT noted that the group registered a net loss of RM366.86mil in its 2022 financial year and its current liabilities exceeded its current assets by RM168.33mil.
"These events or conditions, along with other matters as set forth, indicate that material uncertainties exist that may cast significant doubt on the group’s and the company’s ability to continue as going concerns," it said.
Following the comments, Eversendai's trading stock fell over two straight trading days to close at an all-time low of six sen a share on May 9.
The stock has since rebounded and was last traded before the lunch break at nine sen a share on the back of 537,100 units exchanging hands.
