Eversendai's 3Q loss balloons to RM96m on lower revenue, weak ringgit

• Eversendai said the loss included an unrealised foreign exchange loss of RM53.4 million arising from a stronger US dollar against the ringgit.  

KUALA LUMPUR (Nov 29): Eversendai Corp Bhd's net loss for the third quarter ended Sept 30, 2022 (3QFY2022) ballooned to RM96.27 million from a net loss of RM14.82 million a year earlier, mainly due to under-utilisation of the group’s fabrication facilities, as well as a weakening ringgit.

In a bourse filing on Tuesday (Nov 29), the company said revenue for the quarter fell 33% to RM205.88 million from RM307.92 million previously.

Loss per share swelled to 12.33 sen from a loss per share of 1.90 sen.

The company did not declare any dividend.

For the cumulative nine months ended Sept 30, 2022, net loss swelled to RM195.14 million from a net loss of RM27.52 million a year earlier, on the back of a 33% drop in revenue to RM604.32 million against RM901.44 million previously.

Eversendai said the loss included an unrealised foreign exchange loss of RM53.4 million arising from a stronger US dollar against the ringgit.  

Reviewing its performance, the company said that as of Tuesday, its order book stood at RM1.66 billion.

The company said that as part of its overall strategy for the recovery phase from the post Covid-19 situation and its related impact, the group, in addition to strengthening its order book for the foreseeable future, is undertaking a comprehensive internal reorganisation exercise with a strong focus on optimisation of costs, and improving efficiency of its operations and resources to increase productivity with the aim of ultimately improving its profitability.

It said that as a first step, immediate action has been taken to address short-term liquidity challenges to ensure that it begins to rebound from the effects of the global downturn, and to ensure continued sustainability and development of the group.

“In due course, the group is exploring additional alternative funding options, including restructuring of the group’s assets, to further strengthen its liquidity position and to maintain the progress.

“With these combined efforts, going forward, the group is optimistic about its future prospects, but remains cautious about the global geopolitical and economic challenges,” it said.

At the midday break on Tuesday, Eversendai had fallen 3.23% or half a sen to 15 sen a share, with 35,100 shares traded.