By Sharen Kaur
sharen@nstp.com.my
Published in NST on March 16, 2012
sharen@nstp.com.my
Published in NST on March 16, 2012
KUALA LUMPUR: EVERSENDAI Corp Bhd aims to double its revenue to RM2 billion in five years and to help achieve the target, the company is venturing into the oil and gas business.
It is targeting fabrication of offshore structures like modules, topsides, bridges and flare towers in Malaysia and the Middle East.
Eversendai hopes to embark on such jobs within the next two years, said its chairman and group managing director, Datuk A.K. Nathan.
He said the company is also looking to buy local companies that are involved in steel and power to help increase its revenue and margins.
"We expect these two new ventures to contribute about 25 per cent to our earnings in five years from now," Nathan said yesterday at a briefing for analysts and fund managers.
Eversendai posted a pre-tax profit of RM136.02 million for the financial year ended December 31 2011 on revenue of RM1.03 billion.
Nathan said he is bullish on Eversendai's performance and that the company's growth is not limited by the US debt crisis nor the eurozone debt crisis.
Eversendai's has an existing order book of RM1.4 billion and is bidding for jobs worth in the region of RM12 billion.
He said Eversendai is eyeing several mechanical equipment and structure erection works for power plant and petrochemical projects as well as civil construction jobs in the Middle East, India and the Commonwealth of Independent States.
Besides that, the company will be focusing on getting new infrastructural jobs like from airports, hospitals, convention centres and commercial projects, Nathan said.
"We are a marathon runner and not a 100-metre runner and we will run faster in the last lap to achieve our RM2 billion target in five years. For us, the world is the playing field.
"We believe the RM2 billion target is achievable. We will be selective with projects and not take on jobs that give us less than 15 per cent margins or which have high risks," he added.
Eversendai has won contracts worth a combined RM467 million this year alone.
Nathan said the company expects to secure two or three more contracts soon, each worth more than RM150 million.
It is targeting fabrication of offshore structures like modules, topsides, bridges and flare towers in Malaysia and the Middle East.
Eversendai hopes to embark on such jobs within the next two years, said its chairman and group managing director, Datuk A.K. Nathan.
He said the company is also looking to buy local companies that are involved in steel and power to help increase its revenue and margins.
"We expect these two new ventures to contribute about 25 per cent to our earnings in five years from now," Nathan said yesterday at a briefing for analysts and fund managers.
Eversendai posted a pre-tax profit of RM136.02 million for the financial year ended December 31 2011 on revenue of RM1.03 billion.
Nathan said he is bullish on Eversendai's performance and that the company's growth is not limited by the US debt crisis nor the eurozone debt crisis.
Eversendai's has an existing order book of RM1.4 billion and is bidding for jobs worth in the region of RM12 billion.
He said Eversendai is eyeing several mechanical equipment and structure erection works for power plant and petrochemical projects as well as civil construction jobs in the Middle East, India and the Commonwealth of Independent States.
Besides that, the company will be focusing on getting new infrastructural jobs like from airports, hospitals, convention centres and commercial projects, Nathan said.
"We are a marathon runner and not a 100-metre runner and we will run faster in the last lap to achieve our RM2 billion target in five years. For us, the world is the playing field.
"We believe the RM2 billion target is achievable. We will be selective with projects and not take on jobs that give us less than 15 per cent margins or which have high risks," he added.
Eversendai has won contracts worth a combined RM467 million this year alone.
Nathan said the company expects to secure two or three more contracts soon, each worth more than RM150 million.
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