Results boosted by jump in overseas property sales
PETALING JAYA: Despite a net loss during fourth quarter due to one-off losses, Gamuda Bhd recorded a new annual core net profit high of RM818mil for the financial year ended July 31, 2018, a 17% growth compared to RM701mil last year, boosted by a jump in overseas property sales.
The group registered a net loss of RM101.08mil for the fourth quarter, due to the disposal of Splash amounting to RM300mil and an impairment on investment in Gamuda Water of RM4mil.
On a full financial year basis, Gamuda registered a net profit of RM513.88mil, a 14.6% dip from the previous year’s net profit of RM602.09mil.
The group’s property division, Gamuda Land, was the stellar performer in the last quarter after it posted RM1bil in property sales, lifting its full year sales value to a new high of to RM3.6bil.
Gamuda said property sales in FY18 grew by 50%, compared to last year’s sales of RM2.4bil on the back of stronger sales from its two projects in Vietnam, Celadon City in Ho Chi Minh City, Gamuda City in Hanoi, and GEM Residences in Singapore. Overseas sales contributed 70% of overall property sales.
In a separate development, Gamuda has entered into a conditional share purchase agreement with Pengurusan Air Selangor Sdn Bhd for the proposed disposal of its entire equity interest in Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) for a total cash consideration of RM2.55bil.
According to a Bursa Malaysia filing, Gamuda said the disposal consideration shall be paid by Air Selangor to Splash Holdings via an upfront sum of RM1.9bil and the remaining sum of RM650mil is to be paid in nine annual instalments.
The upfront sum shall be paid on the completion date, which will be no later than 14 calendar days following the date on which the last of the conditions precedent is satisfied or waived.
The disposal consideration, which is justified as it is within the valuation range as appraised by Moore Stephens, will enable Gamuda to monetise its investment in Splash, via its 40% stake in Splash Holdings.
“It is the intention of Splash Holdings to distribute the disposal consideration to its shareholders after the completion of the proposed disposal.
“Assuming the proceeds from the proposed disposal are distributed to the shareholders of Splash Holdings in its entirety, Gamuda’s share amounts to approximately RM1.02bil.
“Gamuda intends to use these proceeds to pare down the interest-bearing borrowings of Gamuda and its subsidiaries, fund for the working capital requirements of the group and/or utilise for any other purposes as may be determined by the board from time to time within 12 months upon the receipt of such proceeds,” said Gamuda.
Meanwhile, Gamuda has also secured a letter of award issued by the Housing Development Board of Singapore, for a vacant 99-year leasehold parcel of land, measuring 4.23 acres, at a tender price of S$318.89mil (RM963mil).
The tender was jointly submitted with Evia Real Estate (8) Pte Ltd and the purchase consideration of the land was the bid price of S$576.24 per square foot per plot ratio.
The land has been earmarked for an executive condominium development, enabling Gamuda to maintain its international profile in Singapore.