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KUALA LUMPUR (March 25): Eversendai Corporation Bhd (KL:SENDAI) said it has received a termination notice from NEOM Company for its Trojena Ski Village structural steel contract in Saudi Arabia, effective March 26, citing geopolitical developments in the Middle East.
Eversendai said in a statement that it is preparing documentation to substantiate project progress and will submit commercial claims, including compensation for termination and related demobilisation costs.
The company added that it expects to be fairly compensated once the claims have been fully substantiated.
The contract, awarded in March 2024 in collaboration with Al Bawani Co, according to Evensendai, had been executed in line with contractual obligations up to the termination date. The project was originally scheduled for completion within 28 and a half months.
The project is one of the four major contracts collectively worth RM5.4 billion two years ago. The other three contracts are Wynn Al Marjan Island Integrated Resort Development in the United Arab Emirates (UAE), as well as Rupa IT Building and Rupa Crystal IT Building in India.
As at present, Eversendai said its order book stands at RM2.02 billion, excluding the remaining balance of the Trojena contract, while its tender book totals RM18.4 billion.
The group also noted that it is close to finalising new projects that are expected to strengthen its order book.
Despite the geopolitical situation, Eversendai emphasised that its Middle East operations remain stable and that it remains optimistic about securing new projects to support financial performance.
Since securing major contracts in March 2024, Eversendai’s financial performance has improved significantly. For the financial year ended Dec 31, 2025 (FY2025), the company reported a net profit of RM110 million on revenue of RM2.14 billion — a sharp increase from a net profit of RM14.1 million on revenue of RM1.24 billion a year earlier.
Eversendai’s shares surged from the 20 sen level following the contract wins in March 2024, briefly touching highs of 78.5 sen in May before retreating.
Over the past one year, the counter has largely hovered between 40 sen and 50 sen. It closed at 35.5 sen on Tuesday (March 24), giving the company a market capitalisation of RM277.45 million.
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