Sendai ... Jun12

Its orderbook and earnings growth are still rising. The construction landscape in Middle East is still vibrant and Eversendai is the frontrunner for the RM850mil Abu Dhabi International Airport (ADIA) structural steel job.

The main contractor for the US$6bil five-year ADIA expansion project will be officially announced in June 2012. It is reported that the Arabtec-TAV-CCC consortium is the likeliest winner for the key component job (midfield terminal building) with the lowest bid of US$3bil. The tender process started in Jan 2011 and there are another three shortlisted bidders.

Eversendai is in a strong position to clinch the structural steel works worth RM850mil as Eversendai is the only structural steel contractor which submitted its bid with a bond, it has a strong track record, being the only structural steel contractor appointed for the New Doha International Airport (NDIA Phase 1-3), despite changes in the main contractors, and ADIA is less challenging than NDIA, with ADIA's steel requirement of 70,000 tonnes versus NDIA's 90,000 tonnes (Phase 1-3).

The structural steel award may be given to the sub-contractor in two to three months after the appointment of the main contractor. The construction is slated to begin in end-2012 and the airport is expected to be operational by 2017.

If Eversendai clinches this job, its outstanding orderbook will jump from its already historical high of RM1.9bil to RM2.8bil (+ 1.5 times), on par to big-cap WCT Bhd (RM2.8bil).

Eversendai is also on the cusp of securing another two high-value structural steel jobs (worth RM700mil) in Azerbaijan.

Meanwhile via its subsidiary, Shineversendai Engineering (M) Sdn Bhd, has been appointed as a supplier for the iron ore distribution project at Teluk Rubiah, Manjung, Perak.

The contract value between Shineversendai and Vale Malaysia Minerals Sdn Bhd is worth RM45.9 million for a period of 12 months. The project is expected to be completed by 2013 and the scope encompasses the supply of structural steel for pipe and cable rack as well as other miscellaneous works.