Gamuda reported strong core earnings for the first half of this year rising 17% as stronger construction and property earnings replaced highway earnings following the divestment of its four highways.
Overseas earnings surged as projects in Australia and Vietnam picked up the pace, the group posted all-time-high earnings of RM1.4 billion for the first half of this year, boosted by a one-off cash gain of RM1 billion on the divestment of its four highways in October 2022. Excluding this one-off gain, its core earnings rose 17% to RM385 million for the first half of this year compared with last year’s first-half earnings of RM329 million on the back of stronger earnings from construction and property divisions.
Overseas earnings surged to contribute 38% of overall core earnings compared with 18% previously as its overseas projects picked up the pace. The group posted half-yearly revenue of RM3.7 billion, a 26% jump from the previous half-year revenue of RM2.9 billion as overseas revenue jumped threefold.
As for its current quarter, Nov-Jan 2023, the group’s quarterly core earnings rose 10% as stronger construction and property earnings replaced highway earnings following the divestment of the four highways. Overseas earnings tripled as Australia
and Vietnam projects picked up the pace. The group’s quarterly earnings rose 10% to RM195 million compared with last year’s quarterly earnings of RM177 million.
The group posted quarterly revenue of RM2.2 billion, a 32% jump from last year’s comparative quarter revenue of
RM1.7 billion as overseas revenue tripled
It is anticipated that this year’s performance will be driven by property sales, pick up in the work progress of Sydney
Metro West – Western Tunnelling Package, Coffs Harbour Bypass & M1 Motorway Extension projects in Australia following the sale of four highways to ALR in October 2022.
Moving forward, the resilience of the Group is underpinned by its large construction order book of nearly RM21 billion (including AUD2b order book boost from the imminent completion of the acquisition of Downer Transport Projects in Australia) and unbilled property sales of RM5.4 billion. On top of that, the Group has a healthy balance sheet with almost zero net gearings.
