Friday 29 Mar 2024
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KUALA LUMPUR (Dec 14): Gamuda Bhd announced a 15.7% drop in its net profit to RM172.04 million for the first quarter ended Oct 31, 2018 (1QFY19), against RM204.08 million in the same quarter last year, primarily because it stopped recognising its share of earnings from water concessionaire Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).

Besides Splash, Gamuda said the lower earnings were also due to the lower profit contribution from its construction division, specifically the KVMRT Line 2 project, and its property projects in Malaysia.

However, it anticipates a "satisfactory performance" this year, driven by overseas property sales especially in Vietnam and Singapore, the MRT Line 2 project, whose pace has since picked up, as well as steady earnings contribution from its expressway division.

Gamuda's 40%-owned associate company Splash was sold to Pengurusan Air Selangor Sdn Bhd for RM2.55 billion in August. The upfront payment of RM1.9 billion is expected to be received in early 2019.

In the quarter, revenue grew 17.2% to RM903.88 million against RM770.77 million in 1QFY18.

The board of directors declared an interim dividend of six sen per share, payable on Jan 25, 2019.

As at end-November, Gamuda said its MRT Line 2 project is progressing on track, with 32% of the elevated works package and 43% of its underground works package completed. Its Pan Borneo Highway joint venture project in Sarawak is 35% completed, while detailed engineering design for parts of the Penang Transport Master Plan will commence by March next year.

For its property division, Gamuda said construction works for the Anchorvale Crescent project in Singapore are expected to commence in mid-2019. In Australia, it expects sales to improve following the completion of 661 Chapel Street in April 2018. Sales are also robust in Vietnam.

In Malaysia, Gamuda said established projects in Horizon Hills and Jade Hills continued to sell well while newer townships Gamuda Gardens and twentyfive.7 are seeing better take-up rates.

The interchange connecting the Elite Highway to its RM20 billion Gamuda Cove project is targeted for completion by March 2019, with the opening of a 50-acre discovery park within the Cove to follow. All 180 units of the first phase residential terraced houses were sold and the second phase of the landed residential parcel is slated to be launched in May 2019.

In a separate filing, Gamuda also proposed the issuance of up to 759.58 million warrants, on the basis of one warrant for every four existing shares, at an issue price of 25 sen per warrant. Any amount raised from the exercise will be used to fund Gamuda Cove and other working capital needs.

The group also proposed to establish a dividend reinvestment plan, to allow shareholders an option to reinvest their cash dividends in new shares in the company.

Gamuda closed five sen or 2.15% lower today to RM2.28, valuing the group at RM5.63 billion.

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