Gamuda’s 2Q18 earnings higher on MRT2

By ALIFAH ZAINUDDIN / Pic By HUSSEIN SHAHARUDDIN

Gamuda Bhd’s net profit for its second quarter ended Jan 31, 2018 (2Q18), rose 27.1% to RM211.3 million from RM166.3 million a year ago, helped by the construction division and stronger overseas property sales.

Turnover for the period rose 17.1% to RM1 billion against RM853.9 million in the corresponding period last year. Revenue for the six-month period was up 22.2% to RM1.8 billion from RM1.4 billion, the conglomerate told Bursa Malaysia last week.

Gamuda’s construction division reported higher revenue due to higher work progress from the Klang Valley Mass Rapid Transit Line 2 (MRT2) project. The construction giant is the project delivery partner for the project.

The company said works on the Pan Borneo Highway Sarawak (PBH) (Pantu Junction to Batang Skrang) is progressing on schedule.

Meanwhile, the property division sold RM1.9 billion worth of properties in 1H18, more than double in sales value compared to the same period last year.

The higher sales were largely attributed to the stronger contribution from its overseas projects, especially in Vietnam, as well as new project launches in Gamuda Gardens and twenty-five.7.

Higher upfront cost for new townships and more affordable housing sold in 1H18 also helped the group register a higher profit before tax (PBT) for its property division.

Gamuda’s infrastructure concessions division — which operates the Shah Alam Expressway, the Damansara-Puchong Expressway, the Sprint Highway and SMART Tunnel — reported a revenue of RM258 million and PBT of RM223 million, similar to last year’s financial performance.

The company said except for the SMART Tunnel, which experienced lower than expected traffic, the traffic volumes of other expressways have been stable and resilient.

The group anticipates MRT2’s progress to pick up, higher property sales driven by overseas projects, especially in Vietnam and new townships in Malaysia, and steady earnings contribution from the expressway division.

The overall cumulative progress of MRT2 as at end-February 2018 is on track at 17.7%. Procurement of the works packages has reached RM31 billion, which represents 98% of the value of the overall works.

Gamuda said works on the PBH is slightly behind schedule, with progress at 21.6% due to the monsoon period. With the end of the raining season, however, progress is expected to catch up in the coming months, and the project is expected to be completed as scheduled.

On its property division, Gamuda expects to achieve its full-year target sales of RM3.5 billion, surpassing last year’s sales of RM2.4 billion.