Eversendai Corporation Bhd said it has received a termination notice from NEOM Company for its structural steel contract for the Trojena Ski Village project in Saudi Arabia, effective March 26, citing geopolitical developments in the Middle East.
In a statement, the group said it is preparing the necessary documentation to substantiate project progress and will submit commercial claims, including compensation for the contract termination as well as related demobilisation costs. The company added that it expects fair compensation once its claims are fully assessed.
The contract was awarded in March 2024 in collaboration with Al Bawani Co. Eversendai said the project had been carried out in accordance with contractual obligations up to the termination date. The development was originally scheduled for completion within 28½ months.
The Trojena project was one of four major contracts secured by the group in 2024, with a combined value of RM5.4 billion. The other projects include the Wynn Al Marjan Island Integrated Resort development in the United Arab Emirates, as well as the Rupa IT Building and Rupa Crystal IT Building in India.
Following the termination, Eversendai said its current 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 several new projects expected to further strengthen its order book.
Despite the geopolitical developments, Eversendai said its operations in the Middle East remain stable and that it remains optimistic about securing new contracts to support its financial performance.
Since securing major contracts in March 2024, the group’s financial performance has improved significantly. For the financial year ended Dec 31, 2025, Eversendai recorded a net profit of RM110 million on revenue of RM2.14 billion, compared with a net profit of RM14.1 million on revenue of RM1.24 billion a year earlier.
The company’s share price rose from around 20 sen following the contract wins in March 2024 and briefly reached a high of 78.5 sen in May before easing. Over the past year, the stock has mostly traded between 40 sen and 50 sen. It closed at 35.5 sen on Tuesday (March 24), giving the group a market capitalisation of approximately RM277.45 million.
