Gamuda reports RM94m 2Q profit

KUALA LUMPUR: Gamuda Bhd reported a net profit of RM94 million in the second quarter (2Q) for the financial year ending July 31, 2011, an increase of 20% compared to RM78 million recorded in the preceding year corresponding quarter due to higher contribution from all divisions.

In a fiiling to Bursa Malaysia on Thursday, Mar 24, Gamuda reported revenue of RM607 million in the quarter under review, compared to RM603 million in the same quarter a year ago. Earnings per share stood at 4.59 sen, compared to 3.90 sen a year ago.

For the six months under review, Gamuda recorded a net profit of RM182.5 million, compared to RM152 million in the preceding year corresponding period. Revenue for the duration under review stood at RM1.24 billion, compared to RM1.22 billion a year ago.

The company said that the overall prospect for the current financial year is expected to improve in the remaining quarters with the existing construction projects progressing on scheduled and the strong performance of the property division.

Gamuda said that its property division in Malaysia benefited from the strong property market and buoyant economy with strong buying activity, particularly in gated and guarded developments such as Bandar Botanic, Horizon Hills and Jade Homes.

"Unbilled sales reached RM840 million as a result of good sales performance. The property division is expected to improve its financial performance for the remaining quarters of the current financial year," it said to Bursa.

Meanwhile, the group's flagship development in Hanoi — Gamuda City — has started its earth and infrastructure works in preparation for its maiden launch in July 2011, while its second development called Celadon City in Ho Chi Minh City, is also ready for its maiden launch in April 2011.

"These two developments in Vietnam are expected to be the key drivers of revenue and earnings growth for the overall property division," it said.

On its construction division, Gamuda said that the MMC Corporation Bhd-Gamuda Bhd joint venture (JV) received a Letter of Award from Syarikat Prasarana Negara Bhd appointing the JV as the Project Delivery Partner for the implementation of the Klang Valley Mass Rapid Transit (MRT) project and works is expected to commence in the third quarter of the calendar year.

On the Electrified Double Track Project, Gamuda said that the government of Malaysia granted the project company extension of time for the project completion date to November 2014 arising from the finalisation of the remaining delay in land handover.

Meanwhile on its New Doha International Airport project in Qatar is progressing on schedule and is expected to be completed in the current financial year. The Yenso Park and Sewage Treatment Plant projects in Vietnam remains on track and is expected to be substantially completed in the current financial year.

It said that group's expressway concessions continued to register strong traffic volumes that contributed to the stable and recurring earnings to the Gamuda, while its ongoing water restructuring in Selangor remains unresolved as the Federal Government and the Selangor State Government have yet to provide a satisfactory response to the water operators.

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