KUALA LUMPUR: Eversendai Corp Bhd is confident of meeting its revenue forecast of RM2 billion one year earlier than the 2017 target, boosted by its oil and gas (O&G) business.
The group reported a net profit of RM36.4 million on revenue of RM1 billion for the financial year ended Dec 31, 2014 (FY14).
Its chairman Tan Sri A K Nathan said contribution from the O&G venture is expected to increase by between 20% and 30% to the group’s revenue in two to three years from about 8% presently, based on the construction of its new waterfront fabrication yard in Ras al-Khaimah, the United Arab Emirates (UAE), which is to be completed by October 2015.
“This [new yard] would certainly help us intensify our progression into the upstream market,” he told reporters after the group’s annual general meeting yesterday.
“We are already on course because a lot of groundwork has been done in the last one to two years. Thus, I would not be surprised if we achieve our RM2 billion [revenue] target next year itself,” he added.
The group’s current O&G tender book stands at RM11 billion, of which 90% consists of overseas jobs.
Eversendai yesterday announced that it had secured new engineering and construction services contracts worth RM250 million in Malaysia, India and the UAE to surpass the RM1 billion mark for new projects secured in the first half of 2015.
Among the contracts secured is the installation of structural steel, metal deck and shear studs as well as connection design, detailing and temporary engineering for the Dhirumbai Ambani International Convention and Exhibition Centre in India. This is the second contract secured by Eversendai for this project, after being awarded a fabrication contract worth RM184 million in January 2015.
It has also secured a fabrication contract of skid shoes for the Umm Lulu gas treatment platform in Abu Dhabi, with a total weight of over 1,200 tonnes.
“Eversendai’s scope of work for this Abu Dhabi Marine Operating Co project is expected to be completed in August 2015,” it said.
On the local front, Eversendai secured a package for structural steel works for the Pengerang co-generation plant at the Rapid complex in Pengerang, Johor, that will be completed in December next year.
This article first appeared in The Edge Financial Daily, on June 30, 2015.