Gamuda Q1 net profit falls 19% to RM160m

PETALING JAYA: Gamuda Bhd’s net profit for its second quarter ended Jan 31, 2016 dipped 19.2% to RM160.1 million from RM182.2 million in the previous year’s corresponding period, mainly due to the softening of the local property market, and tapering of underground and elevated works of the Klang Valley Mass Rapid Transit (KVMRT – Line 1) project.
Revenue, meanwhile, dropped to RM527.4 million from RM653.2 million a year earlier.
In a filing with Bursa Malaysia yesterday, the company said its construction division recorded a decrease in pre-tax profit and revenue due to tapering of underground and elevated works of the Klang Valley Mass Rapid Transit (KVMRT – Line 1) project.
For the six months period, Gamuda net profit fell by 12.7% to RM321.3 million from RM368.02 million. Revenue also dipped to RM1.04 billion from RM1.22 billion.
The company said the Line 1 project was 79% complete as at February 2016 and scheduled to be fully completed by July 2017.
The underground works package has achieved a progress of 85% at the end of February 2016.
For the KVMRT – Line 2 project, Gamuda said five advance works packages have been awarded so far.
“Another sixteen tenders, which includes four main viaduct packages, are under way. Two of the main viaduct packages are expected to be awarded in April, with another two slated for mid-2016,” it added.
For the Penang Transport Master Plan, it said discussions on the scope, terms and conditions of the project delivery partner agreement is ongoing and the agreement is expected to be executed by June 2016.
Despite lower earnings from its property division, the company however said sales from its properties in Vietnam continued to improve.
The division sold RM385 million worth of properties in the first half of its financial year, a 28% drop from the RM535 million sales in the same period before, due to the weak Malaysian property market especially in the Iskandar Johor region.
“Unbilled sales at the end of the current quarter were RM1billion,” it said.
On its overall prospects for its current financial year, the company said it anticipated a good performance this year from ongoing construction projects and steady earnings from the water and expressway concession division.
“However, with the softening residential and non-residential property market in Malaysia, weaker growth for the property division is expected over the coming quarters,” it added.