Gamuda 3Q net profit increases 57.7% to RM73 million

KUALA LUMPUR: Gamuda Bhd’s third quarter net profit for the financial year ending July 31, 2010 (3QFY2010) increased 57.7% to RM73 million from RM46.3 million a year earlier due to higher contributions from all divisions.

In a filing with Bursa Malaysia on Thursday, June 24, the company posted revenue of RM511.2 million in the quarter under review compared to RM579.4 million in the same quarter a year ago, representing a drop of 11.8%.

Earnings per share stood at 3.62 sen compared to 2.31 sen a year earlier.

In the nine months under review, Gamuda’s net profit increased to RM204 million compared to RM150 million in the same period of FY2009. Revenue dropped to RM1.74 billion in the nine-month period of FY2010 from RM1.78 billion in the nine months of FY2009.

On the company’s current prospect for FY2010, Gamuda said that with the existing construction projects progressing on schedule and the recovery of the property market, the group is expected to perform well in the remaining quarter of the current financial year.

Gamuda said that the property division continues to benefit from the improved market sentiment and the strategic locations of its landbank, while newly launched products such as semi-detached houses and bungalow homes – particularly in Bandar Botanic – have attracted significant demand.

On the construction division, the company said that the progress of the electrified double-track project is expected to accelerate in the next quarter, while the construction of the New Doha International Airport is on scheduled with 84% of the work completed, while the Yenso Park and sewage treatment plant project in Vietnam is proceeding on track.

Regarding its water-related concession division, the company said that it is still waiting for new offers to be proposed to all water players in Selangor after its proposed take-over of the water assets and operation in Selangor for RM10.75 million lapsed.

The company also declared a second interim dividend for FYE July 31, 2010 of six sen per ordinary share (less 25% taxation), an increase compared to the four sen per ordinary share (less 25% taxation) dividend declared in previous corresponding period.

The company said that the payment date of the second interim dividend is August 18, 2010 and that the total dividend per share for the current period is 12 sen (less 25% taxation). For the preceding year’s corresponding period, a total dividend per share of 8 sen (less 25% taxation) was declared.