Eversendai Optimistic Of Returning To Profit In 2h - Executive Chairman

KUALA LUMPUR, Sept 5 (Bernama) -- Steel structure player, Eversendai Corp Bhd, is optimistic of returning to profit in the second half (H2) of the year after writing off its troubled Singapore investment, Technics Oil & Gas Ltd. Its Executive Chairman, A.K. Nathan, said the company reported a net loss in the first half of the financial year ending Dec 31, 2016 solely due to impairment cost involved in Technics. "We have spent about US$27.03 million (RM110 million) in impairment cost to-date. We have written the investment off recently," he told a press conference here Monday. (US$1 = RM4.06) Nathan said with the completion of writing off of the investment, the group could return to the black in the third quarter. "We are cognisant that there would be no point in us meeting the revenue target, without any profit. "But rest assured that the losses were a one-off thing," he said. For the second quarter ended June 30, 2016, Eversendai posted a net loss of RM21.28 million compared to a net profit of RM14.10 million the previous quarter. Revenue declined to RM421.55 million from RM425.23 million previously. Nathan said the company would surpass the RM2 billion turnover target it had set for the financial year ending Dec 31, 2016. Eversendai said it has secured RM1.53 billion in construction contracts -- RM649.2 million in the Middle East; RM373.5 million in India; and, RM504 million in Malaysia and Thailand. The contracts comprised fabrication, structural design and erection of steel structures for the Blue Water — Dubai Eye metro station in Dubai; Marathon Futurex II, DLF IT Park Phase III and the Statue of Unity (India); and, Lot 91 Kuala Lumpur City Centre in Malaysia. Nathan said with the increase in job opportunities, the company was happy to have secured these contracts, which proved that Eversendai remained a strong player in the industry. "We have gone to great lengths to build a strong and experienced team to oversee our entire business operations, which is an important factor in further enhancing our portfolio in sustaining an impressive growth well into the future," said Nathan. Eversendai's orderbook stood at RM2.4 billion as at June 30, 2016, providing earnings visibility for the next two years. --BERNAMA