Dip in earnings for Gamuda

KUALA LUMPUR: Gamuda Bhd posted a lower net profit of RM71.4 million for the third quarter ended April 30 of 2013 financial year (3QFY13) against RM138 million in the previous corresponding quarter.

In a filing with Bursa Malaysia yesterday, the group said it achieved a higher revenue of RM905.6 million in the quarter under review, compared with RM705.9 million in 3QFY12.

“The decrease in profit before taxation for 3Q and year-to-date resulted from the one-off provision for expenses in respect of the awards rendered by the Arbitral Tribunals in favour of the group’s subcontractors,” it said.

Gamuda said the provision for expenses awarded by the Arbitral Tribunals had contributed to the decrease in profit for its construction division.

The company said the lower profit from its property division was due to lower gains from Celadon City in Ho Chi Minh City, Vietnam, adding that last year’s profit from Celadon City resulted from the sale of a tract of land to Aeon Co of Japan.

However, Gamuda said its water and expressway concessions division posted an increase in profit on higher contributions from the group’s various expressways.

Earnings per share were lower at 3.37 sen compared with 6.65 sen in the previous corresponding quarter.  The group has proposed a 6 sen dividend for 3QFY13, bringing its total dividend to 12 sen for the nine months ended April 30 (9MFY13).

For the nine months, the group posted lower net profit of RM373.7 million from RM406.8 million in 9MFY12.

This was on the back of higher revenue of RM2.6 billion in 9MFY13 compared with RM2.1 billion a year ago.

On its outlook, Gamuda said it expects to improve its performance in the remaining quarter of FY13, supported by ongoing construction projects, strong unbilled sales in its property division and steady earnings from the water and expressway concessions division.

This article first appeared in The Edge Financial Daily, on June 28, 2013.

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