Gamuda’s 4Q net profit up 20% amid stronger construction and property earnings
Kuala Lumpur (Sept 29): Gamuda Bhd’s net profit increased 19.89% to RM255.24 million for the fourth quarter ended July 31, 2022 (4QFY22), from RM212.88 million a year earlier, on the back of improved earnings in the construction and property divisions.
Earnings per share rose to 9.99 sen from 8.47 sen, according to the group’s filing with Bursa Malaysia.
Quarterly revenue saw an increase of 112% to RM2.2 billion from last year’s comparative quarter of RM1 billion, as construction works picked up on all fronts.
On its concession division’s performance, Gamuda said excluding a RM26 million one-off loss provision on the imminent sale of the group’s 50% stake in Syarikat Mengurus Air Banjir & Terowong Sdn Bhd (Smart) to Amanat Lebuhraya Rakyat Bhd (ALR), the division would have reported quarterly earnings of RM25 million, compared with RM11 million in 4QFY21.
For FY22 as a whole, Gamuda said its net profit rose 37% to a record RM806.23 million, from RM588.32 million in FY21, on stronger construction and property earnings.
Overseas earnings tripled to RM292 million compared with RM98 million in FY21, as the group continued to expand its footprint to broaden its international market reach.
Gamuda’s revenue for the year rose 50.5% to RM4.92 billion, from RM3.27 billion in FY21.
The group said its property division sold a record high RM4 billion worth of properties, a 40% jump compared to RM2.9 billion sales in FY21.
Property revenue reached an all-time-high of RM2.7 billion, a jump of 111% compared to RM1.3 billion in FY21, while property earnings also hit an all-time-high of RM340 million, up 97% from RM172 million previously.
In a separate statement, Gamuda said its construction order book stood at RM14 billion, including in overseas engineering projects such as Sydney Metro West-Western Tunnelling Package and Coffs Harbour Bypass, both in Australia, in addition to unbilled property sales of RM6.2 billion.
“The group has a strong balance sheet with a low gearing of 0.1 times, which will turn net cash positive upon completion of its highway sale,” it added.
On prospects, Gamuda said next year’s performance will be driven largely by property sales, and a pick up in work progress in its projects located in Australia.
In addition, it said works to complete the MRT Putrajaya Line and the sale of four highways to ALR by October 2022 are also expected to boost the group’s earnings.
Shares of Gamuda closed unchanged at RM3.85 on Thursday (Sept 29), giving the group a market capitalisation of RM9.98 billion.