Gamuda third-quarter earnings 77% lower

24 Jun 2020 / 20:33 H.

PETALING JAYA: Gamuda Bhd’s net profit for its third quarter ended April 30 fell 77.1% to RM40.23 million, from RM175.99 million in the same quarter of the previous year, attributed to work stoppages, lack of property sales and low traffic plying its four expressways during the movement control order (MCO) period.

Revenue for the quarter stood at RM549.9 million, a 47% decline from RM1.04 billion previously.

“Movement restrictions were also imposed in all other countries where the group’s projects are located. Despite these challenges, the group’s property sales in Vietnam continued to do well while OLA residences, the group’s latest property project in Singapore, sold one-third or S$219 million worth of properties during its maiden launch in mid-March 2020. Overseas property projects continued to lead in sales performance; contributing two-thirds of overall property sales,” it said in its Bursa Malaysia filing.

In the nine-month period, its net profit fell by 25.4% to RM389.02 million from RM521.17 million, in the corresponding period of the previous year. Revenue for the period fell by 10.7% to RM2.74 billion, from RM3.07 billion registered previously.

Gamuda Land sold RM1.2 billion worth of properties in the first nine months of this year, lower than the RM2 billion sales for the same period last year.

As for its prospects, Gamuda opined that it will be driven by overseas property sales especially Vietnam and the continued progress of MRT Line 2.

However, the low oil price and increased spending on pandemic measures will constrain the government’s plans for infrastructure development, and to this, Gamuda plans to remain prudent while continuing to build resilience.

“The resilience of the group is underpinned by its construction order book of RM7 billion and unbilled property sales totalling RM3 billion which will see it through the next two years. On top of that, the group has a healthy balance sheet with a prudent gearing of 0.4 times,” it said.

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