Gamuda 3Q earnings jump 40%

PETALING JAYA: Gamuda Bhd's net profit jumped nearly 40% to RM116.6 million or 5.67 sen per share for 3QFY11 ended April 30, on higher revenue of RM621.2 million against RM511.2 million previously.

For the nine months to April 30, the group recorded revenue of RM1.86 billion compared with RM1.74 billion during the previous corresponding period. Its pre-tax profit rose 32.4% to RM393.4 million from RM297.1 million a year earlier.

Net profit for the nine-month period increased to RM299.2 million from RM236.2 million previously. Earnings per share also grew to 14.6 sen per share from 11.7 sen per share.

In the announcement to Bursa Malaysia on Thursday, the group said it expects its financial results to improve further in the remaining quarter, riding on the progress of existing construction projects and the strong performance of its property division.

The group said existing construction projects, such as the electrified double-tracking project in Malaysia, the New Doha International Airport in Qatar and the sewerage treatment plant project in Vietnam, are all progressing on schedule and are expected to be completed between the end of this year and 2014.

Unbilled sales for its properties in Malaysia have improved substantially, reaching an all-time high of over RM1 billion. The group also expects the property division to grow strongly from additional sales of Gamuda City in Hanoi and Celadon City in Ho Chi Minh City.

"Earthworks and infrastructure works in Gamuda City and Celadon City are now in full swing and construction will start soon. Property sales in Celadon City will commence in the final quarter of the financial year," the group said.

While its construction and property divisions are expected to continue with better prospects for the year ahead, the water division will have to wait for a clearer path ahead as the federal and Selangor governments have failed to reach an agreement on the state's water concessions and the issue of toll rate increases dogs the expressway division.

"The group's expressway concessions continued to register strong traffic volumes, contributing to the stable and recurring earnings of the group. In April 2009, the government announced that it would provide a long-term solution to the recurring issues relating to toll increases. The decision from the government is still pending," it said.