PETALING JAYA: Construction giant Gamuda Bhd continues to see overseas activities as its main performance driver for financial year 2024 (FY24), as projects in Australia, Taiwan and Singapore continue to pick up pace, bolstered by property sales from its quick-turnaround projects.
In addition, it said its large construction order book of RM24bil and an unbilled property sales of RM6.7bil will provide major support, on top of a healthy balance sheet with a comfortable net gearing of 35%.
Releasing its results for the third quarter ended April 30 yesterday (3Q24), the group said net profit increased by 5.6% year-on-year (y-o-y) to RM235.8mil, as revenue grew 20.5% to RM2.49bil.
In a filing with Bursa Malaysia, Gamuda attributed the rise in profits and turnover to contribution from its overseas projects, which comfortably offset the steep decline in domestic earnings.
“The decline in domestic earnings was due to the completion of the Mass Rapid Transit 2 project last year and the delay in regulatory approvals of several domestic projects such as Penang Light Rail Transit and Upper Padas Hydroelectric Power Plant in Sabah,” it said.
Cumulatively, for the nine months ended April 30, 2024 (9M24), net earnings were down by 59.7% y-o-y to RM639.6mil, although revenue surged 79% to RM8.63bil.
The group said the fall in cumulative net profit was primarily due to its recognition of an exceptional gain from the disposal of its highway operations last year.
“Excluding the discontinued highway operations, core net profit rose 14% from last year’s RM563mil due to stronger overseas earnings of both construction and property divisions,” it said.
Gamuda credited its turnover jump to a significant improvement in overseas revenue for 9M24, which contributed 77% of overall group revenue from 52% previously.
It added that the growth in overseas earnings was spearheaded by full subsidiary Gamuda Engineering Sdn Bhd, which recorded a tripling of its overseas revenue and net profit substantially powered by its Australian projects.
Meanwhile, compared to the preceding quarter ended Jan 31, net profit rose 12.9% from RM208.8mil, although revenue slid 25.2% from RM3.33bil, with the Gamuda pointing to higher construction and property earnings in 3Q24.
For 9M24, Gamuda declared a dividend of 16 sen per share, which was 33% higher than the 12 sen dividend paid in the corresponding financial period.
Excluding a special dividend of 38 sen paid in December 2022, Gamuda had paid out 12 sen in dividend in 9M23.
“This year’s 33% increase in annual dividend reflects confidence in the group’s robust outlook and sustainable growth potential,” it said.