Gamuda 2Q net profit up 8.43% to RM170.12m

KUALA LUMPUR: Gamuda Bhd’s net profit jumped 8.43% to RM170.12 million in its second quarter ended Jan 31, 2014 (2QFY14) from RM156.89 million a year ago on higher contribution from all divisions. Revenue also rose 3.49% to RM517.63 million from RM500.18 million previously. However, its earnings per share dropped to 7.41 sen from 7.52 sen a year ago.

For the six months ended Jan 31 (6MFY14), the group posted a net profit of RM335.6 million, up 11% from RM302.33 million, while revenue was 5.28% higher at RM1 billion from RM953.44 million a year earlier.

In a filing with Bursa Malaysia yesterday, Gamuda attributed the increase in net profit for 6MFY14 to higher contribution from its construction, property and water and expressway divisions.

On its construction division, Gamuda said the increase in profit resulted from higher work progress of the Klang Valley mass rapid transit (KVMRT) project.

The higher profit in the property division was attributed to increased contribution from the Horizon Hills project in Iskandar Malaysia, Johor, while the group’s various expressways contributed to rise in earnings of the water and expressway concessions segment.

Through its 50%-owned MMC-Gamuda KVMRT (PDP) Sdn Bhd, Gamuda said the cumulative progress of the MRT project as at end-February was 39% completed.

“The project is targeted for full completion by July 2017,” it said.

On the underground works, Gamuda said seven tunnel boring machines had been launched in stages with the balance to be deployed from May. It said the cumulative progress of the underground works as at end-February was 54% completed.

Meanwhile, Gamuda, which owns a 40% stake in Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash), together with businessman Tan Sri Wan Azmi Wan Hamzah, who owns another 30% stake, have refused to sell their stakes to Kumpulan Darul Ehsan Bhd.

Gamuda said on March 10 that it was constrained from accepting the offer due to the “adverse consequences” for the group.

“The net offer of RM250.6 million for Splash compared to the net asset value (NAV) of Splash amounting to RM2.54 billion as at December 31, 2013 will result in a huge divestment loss of RM920 million to the company. The offer of RM250.6 million is below 10% of Splash’s NAV. The offer is therefore not reasonable for acceptance by the company,” it restated in its filing yesterday.

On its property division, Gamuda said for 6MFY14, it achieved sales of RM980 million, a 63% increase from the previous corresponding period. Unbilled sales as at Jan 31 stood at RM1.7 billion.

Moving forward, the group anticipates an improved performance this year from ongoing construction projects, substantial unbilled sales in the property division and steady earnings from its water and expressway concessions division.

This article first appeared in The Edge Financial Daily, on March 28, 2014.


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