Gamuda clinches RM1.8bil Singapore job

Gamuda said the project is its first independent venture in Singapore without joint-venture partners and its third infrastructure project in the country.

PETALING JAYA: Gamuda Bhd has bagged a RM1.77bil contract for the design and construction of the West Coast Station and tunnels from Singapore Land Transport Authority.

This station is integral to the 15km Cross Island Line phase two (CRL2), featuring six stations and marking Singapore’s eighth mass rapid transit line.

In a statement yesterday, Gamuda said the project is its first independent venture in Singapore without joint-venture partners and its third infrastructure project in the country.

The West Coast Station and tunnels’ scope of works includes one underground station and two tunnels, of 1.9km.

The construction works are expected to start in the first quarter of 2024, with passenger service for CRL phase two targeted to commence in 2032.

Meanwhile, for the first quarter ended Oct 31, 2023 of financial year 2024 (1Q24), Gamuda saw its revenue more than double to RM2.8bil from RM1.3bil in 1Q23, as its revenue from overseas operations tripled to RM2.1bil. Net profit for the quarter under review came in at RM195.04mil translating to an earnings per share of 7.26 sen.

Gamuda’s net profit for 1Q23 was RM1.17bil due to its divestment of its highway business which resulted in a gain of RM1bil.

The group said its construction and property earnings rose 35% to RM195mil in 1Q24 compared with RM145mil a year ago, as revenue doubled on the back of higher contributions from overseas projects.

Gamuda has declared a single tier interim dividend of six sen per share.

Looking ahead, Gamuda expects its financial year ending on July 31, 2024 (FY24) to be driven by overseas construction activities.

This would include the acceleration of projects in Australia and Taiwan, the full-year contribution from the recently acquired Australian transport projects business of Downer Transports Projects, and property sales.

The company expects a higher contribution from newly launched quick-turnaround projects (QTPs) within its property division.

“Moving forward, the resilience of the group is underpinned by a construction order book of RM26bil and unbilled property sales of RM6.7bil.

“The group has a healthy balance sheet with a comfortable net gearing of 25%, well below its self-imposed gearing limit of 70%,” it noted.

Meanwhile, in 1Q24, Gamuda Land sold RM454mil worth of properties and recorded RM500mil booking of new sales which will be converted in 2Q24.

Strong sales locally, especially for Gamuda Cove, contributed two-thirds of the overall sales while overseas projects continued to see higher take up rate – particularly QTPs.

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