Gamuda declares six sen dividend after 1Q net profit grows more than seven-fold

Kuala Lumpur (Dec 16): Gamuda Bhd’s net profit for the first quarter ended Oct 31, 2022 (1QFY23) rose more than seven times to RM1.17 billion from RM152.4 million in 1QFY22, mainly from the RM1 billion one-off cash gain on divestment of its four highways.

Its earnings per share surged to 45.32 sen from 6.06 sen compared with a year ago.

The latest net profit of RM1.17 billion is also the engineering, property and infrastructure company’s all-time high quarterly earnings, Gamuda highlighted when it released its financial report on Friday (Dec 16).

The company’s quarterly revenue gained 90% to RM1.31 billion from RM687.9 million year-on-year.

Gamuda declared an interim dividend of six sen per share for the financial year ending July 31, 2023(FY2023) and the payment date will be determined later. On Nov 22, the company declared a special dividend of 38 sen per share following its highway divestment, payable on Dec 23.

This brings its total declared dividend in 1QFY23 to 44 sen per share.

Excluding the one-off gain of the highway’s divestment completed on Oct 22, Gamuda said its core earnings rose 25% to RM190 million contributed by stronger earnings from all divisions.

“Overseas earnings grew 2.5 times to contribute 25% of total earnings compared with 12% previously as we advance on our regionalisation strategy,” Gamuda said.

On prospects, the company said that 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 is anticipated that 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 Amanat Lebuhraya Rakyat Bhd (ALR) in Oct 2022,” it said.

Gamuda added that the resilience of the group is underpinned by its large construction order book 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.

Gamuda’s shares closed unchanged at RM3.61, valuing the group at RM9.44 billion. Year to date, its share price has increased 25.78% from RM2.87.