business

Eversendai secures 9 new projects worth RM1.1bil

The Eversendai Group has secured nine new projects worth a total of RM1.1 billion in the United Arab Emirates, Qatar, Saudi Arabia, India, and Singapore.

"With the new projects, opportunities in the respective regions will further enhance our growth," said Tan Sri AK Nathan, group managing director of Eversendai.

Despite many challenges, Eversendai foresees the year 2023 as a year of recovery and resilience after the onslaught of the Covid-19 related impacts to the group, he said in a statement.

Nathan said the group is confident to overcome the challenges to recover with its team who are strongly committed to re-shape the Eversendai group with perseverance and persistence in becoming a stable and sustainable outfit going forward.

Eversendai's tender book is estimated at RM11 billion with highly prospective iconic landmark projects in the pipeline, especially in Saudi Arabia and India.

Nathan said that with the current backlog of new order book secured and the overall positive market outlook in key geographical regions in which it operates, the group anticipates a gradual and steady recovery in 2023 and beyond with a strong emphasis and renewed focus on its core values.

He said that 2022 was a year full of difficulties, including a decline in important markets, residual disruptions from Covid-19-related problems, and barely 30 per cent utilisation of the group's overall fabrication capacity.

According to him, this is the first time in Eversendai's history that it faced such low utilisation of the fabrication facilities which was clearly reflected in the group's financial results for 2022.

"The group has embarked on a comprehensive and thorough internal review of cost estimates and margins of all the ongoing projects to ensure 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 said.

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