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Gamuda 1Q earnings up 14.5% to RM63m

KUALA LUMPUR: Gamuda Bhd posted stronger set of earnings in the first quarter ended Oct 31, with net profit at RM63 million, up 14.5% from RM55.04 million a year ago, due to higher contributions from all divisions.

The infrastructure-based company said on Tuesday, Dec 22 that revenue was marginally higher by 1.63% at RM623.96 million from RM613.96 million.

Earnings per share were 3.13 sen versus 2.74 sen. It also declared a dividend of 6.0 sen per share compared with 4.0 sen a year ago.

Gamuda said for 1Q under review, the pre-tax profit of RM83.5 million was higher than the preceding quarter's profit before tax of RM80.4 million, "primarily due to higher contribution from the property division arising from strong property sales with effect from the middle of the last financial year".

On the prospects, it said with existing construction projects progressing on schedule and the recovery of the property market, the group's performance is expected to improve in the remaining quarters of the current financial year.

On the Electrified Double Track project, it said work progress was behind schedule due to delays in design approval and late handover of land by the authorities.

"Under the terms of the contract signed by the Government of Malaysia and the project company, all land should be handed over to the project company early this year, but to-date, only 90% has been handed over.

"As a result of the delays, on Nov 9, 2009, the government granted the project company an interim extension of time of 11 months to complete the project. The project completion date is now revised from January 2013 to December 2013. The work progress is expected to pick up in the remaining quarters of the financial year," it said.

As for the New Doha International Airport project in Qatar, Gamuda said progress claims submitted to the Qatari government are being settled within the contractual period. It added the project was progressing on
schedule.

On the Yenso Park and sewage treatment plant projects in Vietnam, it said they were progressing well. The recent devaluation of the Vietnamese dong has no significant near term impact on the group.

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