Gamuda Q4 net profit down on provision for impairment on Smart's expressway

PETALING JAYA: Gamuda Bhd’s net profit for the fourth quarter ended July 31, 2017 fell 32.44% to RM102.75 million from RM152.10 million a year ago due to a one-off provision for impairment on Smart’s expressway.

In a filing with Bursa Malaysia today, the group said it set aside RM98.45 million as a one-off provision for impairment on Smart’s expressway as a result of the lower-than-expected toll revenue projections in the year ended 2017.

Its revenue rose 64.91% to RM1.01 billion from RM614.39 million a year ago, due to higher work progress of its various construction projects and better property sales achieved by Celadon City in Ho Chi Minh and Gamuda City in Hanoi. Its water and expressway concessions division also reported higher contributions from mature expressways.

For the full year ended July 31, 2017 (FY17), net profit fell 3.84% to RM602.09 million from RM626.13 million a year ago while revenue rose 51.35% to RM3.21 billion from RM2.12 billion a year ago.

For FY18, the group expects better performance as the Klang Valley Mass Rapid Transit Line 2’s progress picks up pace and as contributions from steady earnings of the expressway division.

Gamuda’s share price was unchanged at RM5.29 today with 10.47 million shares traded, giving it a market capitalisation of RM12.98 billion.