PETALING JAYA: Gamuda Bhd’s third quarter earnings to April 30, 2016 decreased by 4.83% to RM152.69mil on the back of a 15.62% drop in revenue to RM467.29mil mainly due to a softening of the property market in Malaysia.
The lower earnings and revenue were further contributed by the tapering of underground and elevated works of the Klang Valley Mass Rapid Transit Line 1 project, Gamuda said in a filing with Bursa Malaysia.
Thus, earnings per share dropped to 6.34 sen from 6.81 sen previously.
Gamuda said despite the soft property market, sales from its property projects in Vietnam continued to improve while its water and expressway concession division recorded improvement resulting from the toll rate hike of certain expressways.
The company declared a dividend of 6 sen. On a nine-month basis, it has declared total dividends of 12 sen.
As of the third quarter, Gamuda’s cash position dropped to RM745.15mil from RM1.04bil previously.
Meanwhile, for the full year, Gamuda’s net profit was down 10.3% to RM474.04mil on the back of a 15.15% drop in revenue to RM1.51bil.
Moving forward, the group anticipates a good performance this year from ongoing construction projects and steady earnings from the water and expressway concessions division.
“However, with the softening residential and non-residential property market in Malaysia, weaker growth for the property division is expected over the coming quarters,” Gamuda said.
On the progress of the Klang Valley Mass Rapid Transit, in which Gamuda plays the role of project delivery partner (PDP) via MMC Gamuda KVMRT Sdn Bhd, the company said the overall cumulative progress at at the end of May 2016 was an 86% completion rate.
“The project is on target for Phase 1 completion in December 2016 and full completion by July 2017, with no significant cost overruns so far. Construction continues to achieve significant progress.
“The installation of rail tracks has progressed well, with all the track works of Phase 1 (northern section) from Sg Buloh to Semantan completed. Overall track works is at 94% completion,” said Gamuda.
Thirty five electric trains, of which 22 trains have been earmarked for Phase 1 operations, have been delivered to the Sg Buloh Depot.