KUALA LUMPUR (Aug 28): Eversendai Corp Bhd (KL:SENDAI), which posted a net loss of RM10.63 million for the second quarter of 2026, expects to settle claims over its cancelled structural steel contract for the Trojena Ski Village by 1Q or 2Q2027.
The contract termination in March was among the factors that pushed the construction firm into the red in the three months ended June 30, 2026 (2QFY2026).
Contractual termination claims related to the cancelled contract have been submitted to NEOM, the group noted, with settlement expected to be concluded by the first or second quarter of 2027.
The group swung into a net loss for 2QFY2026 compared with a net profit of RM12.16 million in the same quarter a year earlier, according to the group’s bourse filing on Friday.
Revenue for the quarter nearly halved to RM284.81 million from RM550.59 million. Its bottomline was also weighed by revalidation of margins on projects in India, as well as provision for impairment of receivables and retentions against previously completed projects in the Middle East.
Eversendai recognised an impairment loss on receivables and assets of RM14.38 million in the latest quarter. Overall, operating and administrative expenses rose 81.1% year-on-year (y-o-y) to RM46.89 million.
For the cumulative six months, net loss stood at RM7.97 million as compared with a net profit of RM14.61 million in the same period a year earlier. Cumulative revenue dropped 16.6% y-o-y to RM798.21 million.
In response to the terminated Ski Village contract and ongoing geopolitical situation in West Asia, Eversendai said it has taken immediate and decisive measures to optimise its operating cost structure and strengthen overall operational efficiency.
Meanwhile, it said its order book stands at RM2.4 billion, providing a strong foundation for future revenue and earnings visibility.
Shares of Eversendai ended half a sen or 1.96% lower at 25 sen on Friday, valuing the group at RM195.39 million.