Gamuda has a construction orderbook of nearly RM15 billion and unbilled property sales of nearly RM6 billion.
PETALING JAYA: Infrastructure, engineering and property group Gamuda Bhd has posted an all-time high quarter earnings of RM1.17 billion in its first quarter ending Oct 31, 2022 (Q1 FY2023) from RM152.4 million a year ago after disposal of its highway assets.
Excluding the one-off cash gain of RM1 billion on divestment of its four highways, its core quarterly earnings rose 25% to RM190 million, from RM152 million in the corresponding quarter a year ago.
This was attributed to stronger earnings from all divisions as overseas earnings grew 2.5 times to contribute 25% of core earnings compared to 12% previously, Gamuda said in its filing with Bursa Malaysia today.
However, on a quarter-to-quarter basis, the Q1 core earnings was a drop of 25% compared with the preceding quarter’s (Q4 FY2022) earnings of RM255 million due to last year’s lumpy property earnings from Vietnam.
The group’s quarterly revenue stood at RM1.5 billion, a 19% jump compared to RM1.3 billion from last year’s comparative quarter as overseas revenue quadrupled.
The sale of Kesas Sdn Bhd (KESAS), Sistem Penyuraian Trafik KL Barat Sdn Bhd (SPRINT), Lingkaran Trans Kota Sdn Bhd (LITRAK) and Syarikat Mengurus Air Banjir & Terowong Sdn Bhd (SMART) to Amanat Lebuhraya Rakyat Bhd (ALR) was completed in October this year.
Pre-Christmas dividend windfall
Shareholders of the company are in for a huge windfall. For the financial year ending July 31, 2023, a special dividend of 38 sen per share was declared following the disposal of the highways, payable on Dec 23, and a first interim dividend of 6 sen per share payable at a later date to be determined.
On its prospects, Gamuda said public spending and stimulus for infrastructure development constrained by rising government fiscal burden may see some momentum with the government’s revival of public-private partnerships (PPP 3.0).
It anticipates this year’s performance will be driven by property sales, pick up in work progress of Sydney Metro West – Western Tunnelling Package & Coffs Harbour Bypass projects in Australia, and works to complete the MRT Putrajaya Line (formerly called MRT Line 2) following the sale of four highways to ALR in October 2022.
Moving forward, it said the group’s resilience is underpinned by its large construction orderbook of nearly RM15 billion and unbilled property sales of nearly RM6 billion.
“On top of that, the group has a healthy balance sheet with a net cash surplus position following the completion of the highway sale,” it said.
In Q1 FY2023, its property arm Gamuda Land sold RM480 million worth of properties compared with RM838 million sold a year ago.
The lower quarterly sales was due to its executive condominium in Singapore, OLA Residences, being fully sold out last year and Celadon City project in Ho Chi Minh nearing completion.
Gamuda’s shares closed flat at RM3.61, giving it a market capitalisation of RM9.4 billion. Year-to-date, its share price has risen 25.8% from RM2.87. Gamuda’s financial results were released after the market closed.
