Eversendai bidding for RM23b jobs

KUALA LUMPUR: Eversendai Corp Bhd, which is confident of registering RM2 billion in revenue by 2017, is bidding for RM23 billion worth of jobs locally and overseas.
Executive chairman and group managing director Tan Sri A.K. Nathan (pix) said of its tender book, RM12 billion consists of infrastructure projects while RM11 billion is oil and gas contracts.
The group anticipates winning more contracts from its current tenderbook and will continue to aggressively pursue commercial and infrastructure projects in the Middle East, India and Malaysia. It is also expanding its fabrication facility in Sharjah to accommodate the contracts that it has secured as well as those in the pipeline.
Eversendai's current orderbook stood at RM2 billion and will last the group up to 2017.
Yesterday, the engineering and construction services provider announced that it has secured new contracts worth RM250 million through its subsidiary companies in Malaysia, India and UAE to surpass the RM1 billion mark for new projects in the first half of 2015.
"I won't be surprise if we hit the RM2 billion (in revenue) next year," Nathan told a press conference after the group's AGM here, explaining that its core business and new business, as well opportunities in the Middle East, India and Southeast Asia regions will drive financial performance.
Eversendai posted a revenue of RM1 billion for the financial year ended Dec 31, 2014 (FY14). Its portfolio includes structural steel, power and process plants, oil and gas process modules as well as composite and reinforced concrete building structures.
He said Eversendai's core business (engineering and construction services) will be the foundation to support the group. However, it sees prospects in the oil and gas, which is expected to contribute significantly to the group in the future and in line with its target to hit the RM2 billion revenue mark. Oil and gas currently contributes about 8% to the group's revenue.
The construction of its sixth fabrication plant in Ras Al Khaimah is progressing and is expected to be completed by October 2015, which will help the group intensify its progression into the upstream market.
Meanwhile, the group is also expanding and exploring business opportunities in Thailand and Indonesia, where it foresees prospective projects that fit into its portfolio.
"In Indonesia, we'd like to explore the possibilities of participating in high rise building where they use composite structures, power plant and petrochemical projects. In Thailand, there is a power plant project that we are pursuing. We're confident of getting a contract and we can use that as a stepping stone to look at venturing and positioning ourselves in Thailand in the future.
"We don't depend on a single client or single market. We're an international contractor and for us, the global playing field is a huge market. Our footprint is large and we're established in the international market," said Nathan.
About 90% of its businesses are overseas and a number of these contracts are pegged to the US dollar.
"When we repatriate the profits, we have better numbers to talk about, especially with the strength of the US dollar," said Nathan.