KUALA LUMPUR: Engineering and construction firm, Gamuda Bhd saw its net profit slip 16% to RM172.04mil for its first quarter ended July 31, 2018 as compared with RM204.07mil it posted for the same quarter previously.
In a filing to Bursa Malaysia, Gamuda attributed the lower earnings to the disposal of its 40% stake in Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).
“The lower group earnings is because the Group stopped recognising its share of Splash profits with effect from this quarter following the sale of Splash at the end of the last financial year,” it said.
Revenue for the quarter was higher at RM903.88mil versus RM770.76mil before.
Gamuda said overseas projects contributed 70% of property earnings.
“Gamuda Land generated 70% of its property earnings from its overseas projects driven by the robust sales of its two projects in Vietnam, Celadon City in Ho Chi Minh City and Gamuda City in Hanoi, and GEM Residences in Singapore which is almost fully sold.” It said the construction division saw lower earnings due to lower profit contribution from the Klang Valley Mass Rapid Transit (MRT) Line 2 project.
“Meanwhile, works on the Pan Borneo Sarawak Highway?Pantu Junction to Batang Skrang is progressing on schedule,” it added.
On outlook, Gamuda said the Group expected a lower profit contribution from its water concession business in the current financial year following the disposal of Splash in the previous financial year.
“The profit contribution from Gamuda Engineering will also be affected by the reduction in contract value of the MRT Line 2 project following renegotiation with the Government.
“Nevertheless, the Group anticipates a satisfactory performance this year driven by overseas property sales especially in Vietnam and Singapore, the progress of MRT Line 2 continue to pick up pace and steady earnings contribution from the expressway division.” For the financial year ending July 31, 2019, Gamuda declared an interim dividend of 6 sen per ordinary share, payable on Jan 25, 2019. - Bernama