Gamuda eyes RM10b orderbook

by NUR HANANI AZMAN / graphic by MZUKRI MOHAMAD

GAMUDA Bhd aims to replenish its orderbook with some RM10 billion worth of new jobs in the financial year 2022 (FY22) with projects like the Penang South Islands (PSI) project and projects in Australia. 

Gamuda Engineering MD Justin Chin Jing Ho said Gamuda’s current construction orderbook stood at RM4.5 billion which would be able to sustain the company’s earnings for the next two years. 

“For the next financial year, we are carrying forward our orderbook replenishment target of RM10 billion from last year with just under half of which comes from the PSI reclamation and the remainder from Australia. 

“The PSI project has been setback by about half a year given the relocation of the environmental impact assessment (EIA) approval, and we are currently awaiting the results of some tenders which have been delayed in Australia due to impacts from the Covid-19 pandemic,” he said at a virtual press conference on Gamuda’s 45th AGM and EGM yesterday. 

Chin said Gamuda is actively bidding for a number of projects in New South Wales, Victoria and South Australia, targeting an orderbook of A$5-A$6 billion (RM25.38 billion) in the next three to five years given the strength of Australia’s announced project pipeline of over A$110 billion for infrastructure development in the next decade. 

“We are awaiting the results of two tenders in Australia of which are expected to come up in the next one or two quarters. In 2022, we are targeting another three to four new tenders in the Australian market,” he added. 

Gamuda is also looking to expand its current base for ongoing projects secured in the last two year in Taiwan and Singapore given it already has a presence and team there. 

“We have four ongoing projects in Taiwan and Singapore and all are on schedule. We continue to pursue the pipeline of infrastructure projects in these countries. 

“We foresee an encouraging next few years as the regional governments are looking at infrastructure spending to support economic recovery and we hope to be able to capitalise on the opportunity,” he said.

On the Mass Rapid Transit Line 3 (MRT3) project, Gamuda is still awaiting the government decision on the revival of MRT3. 

“The continuation of MRT3 will provide stimulus to the construction industry and multiplier effects. We see an urgent need for MRT3 as MRT2 is nearing completion, and without continuity, many thousands of local jobs are at risk as well as the supply chain,” Chin said. 

On Gamuda’s proposal to sell its four high-way concessions to a private highway trust, he said the group has submitted a proposal to the government and are waiting for its decision. 

Gamuda, directly and through 43.2%-owned Lingkaran Trans Kota Holdings Bhd, controls Lebuhraya Damansara-Puchong, Sistem Penyuraian Trafik KL Barat, Lebuhraya Shah Alam and the Smart Tunnel. 

Gamuda MD Datuk Lin Yun Ling said as a nation fast-tracking its climate change action, an emission reduction of 50% by 2030 should be targeted to limit global temperature warming to 1.5°C. 

“However, deadlines are meaningless without a clear roadmap. Thus, a clear roadmap for the next ten years is very crucial and without a clear pathway, the game to achieve net-zero by 2050 is almost certainly lost. 

“Our number one priority must be decarbonising our electricity. It is also important to get our emissions trading system up and running immediately, and the price for carbon can be increased gradually thereafter,” he said. 

Gamuda posted a net profit of RM214.1 million for the fourth quarter ended July 31, 2021 (4Q21), compared to a loss of RM12.5 million in 4Q20 amid stronger construction and property earnings, as work on all fronts picked up pace on the back of rigorous Covid-19 control measures. 

Revenue was slightly lower at RM886.67 million versus RM926.51 million in 4Q20. 

For the year, net profit rose to RM588.31 million compared to RM376.5 million, while revenue was slightly lower at RM3.51 billion compared to RM3.66 billion previously.