Gamuda 3Q earnings up 57.7% y-o-y to RM73m

Gamuda Bhd posted a net profit of RM73 million or 3.62 sen per share in the third quarter ended April 30, 2010 (3QFY10), 57.7% higher than RM46.3 million in the corresponding period last year.

The higher earning was due to better contributions from all business divisions. Revenue, however, dropped 11.8% to RM511.2 million from RM579.4 million. Gamuda declared a second interim dividend of six sen per share less 25% tax payable on Aug 18.

For the nine-month period, net profit jumped 35% to RM204 million, or 10.12 sen per share, versus RM150.4 million previously while revenue came in at RM1.74 billion, down a marginal 2% from RM1.78 billion in 2009.

Gamuda said in a statement yesterday that progress of Gamuda’s joint venture with MMC Corp Bhd for the Ipoh-Padang Besar electrified double-tracking project has been slightly hampered by a delay in land acquisition.

“Under the terms of the contract signed by the joint-venture company and the government of Malaysia, all land should be handed over to the project company in 2008 but to date, only 95% has been handed over, representing a delay of two years,” said Gamuda.

It added that work progress is expected to accelerate in the next quarter.Overseas projects, however, are progressing on schedule with 84% of works at the New Doha international airport in Qatar completed while collections from the Qatari government continue to be on time.

Work progress on Yenso Park and Sewage Treatment Plant in Vietnam is also on track while the group’s property division is expected to continue to benefit from the improved market sentiments, said Gamuda.

The company together with MMC have jointly proposed to the government a RM36 billion MRT system to improve the public transport system in the Klang Valley, and is also in the running to secure the RM7 billion LRT extension project. Gamuda shares closed up one sen to RM3.21 yesterday with some 15 million shares traded. The shares have risen 23.4% year to date while net asset per share stood at RM1.62 as at April 31, 2010.

Written by Kay 
The Edge Malaysia