Eversendai 1Q net profit jumps 74% on higher forex gain

KUALA LUMPUR (May 31): Eversendai Corp Bhd’s net profit jumped 74.4% to RM26.6 million for the first quarter ended March 31, 2018 (1QFY18) from RM15.3 million a year ago, mainly due to higher foreign exchange (forex) gain earned from the appreciation of the ringgit during the current quarter under review.

Earnings per share rose to 3.41 sen in 1QFY18, from 1.97 sen in 1QFY17.

Quarterly revenue, however, slipped 1.18% to RM391.3 million, compared with RM396.0 million in 1QFY17.

In a statement today, Eversendai attributed the largest portion of the group’s profit to its structural steel division, which registered a profit before tax (PBT) of RM24.3 million, compared with RM26.2 million in 1QFY17.

The group’s oil and gas division posted a jump in the PBT to RM1.1 million, compared with a loss before tax of RM4.7 million a year ago.

The Middle East region delivered 48.9% of the group’s revenue via its structural steel arm.

India contributed 14.4%, followed by Malaysia 8.2%.

This current quarter also saw operations in the Southeast Asia region reporting higher profits against the corresponding quarter last year.  

“There is a significant increase in the overall group profit, due to the extra effort put in by all dedicated and committed staff to reduce the operating cost, in order to increase productivity. 

“The turnaround of Eversendai group business in 2017 and the positive outlook in 2018 have given us added motivation to move forward with confidence to continuously position Eversendai group of companies with continuous profitable growth,” its executive chairman and group managing director Tan Sri A K Nathan said.

On the group’s prospect moving forward, Eversendai said it has secured RM533.9 million new contracts during 1QFY18 and that the group’s order book stood at RM1.9 billion.

“Approximately 39.4% of the order book came from the group’s traditional stronghold in the Middle East region, 22.9% from South East Asia, 23.2% from India and the remaining 14.5% are from the Oil & Gas segment,” it said, adding that the group is confident on continuing to have sustainable revenue and profitability, going forward.

At 2.22pm, Eversendai’s share price was traded up 3 sen or 3.33% at 93 sen, with 882,100 shares done, giving it a market capitalisation of RM726.3 million.