The cost overruns were reflected in the group’s lower revenue — down RM149.4 million or 30.3% y-o-y to RM340.97 million. Instead of booking an expense, the cost overruns were recognised in the accounts as a downward adjustment to revenue. AK explained that the cost overruns stem from an eight-to-nine-month delay in securing financing for a project. Recall, Eversendai recorded a one-off write-down of RM110 million for its failed venture into the Singapore-listed Technics Oil & Gas Ltd. Barring additional surprise impairments, Eversendai is poised to quickly return to the black after FY16’s heavy kitchen-sinking.

Source: The Edge Markets March 01, 2017 01:13 UTC