GAMUDA POSTS LOWER PROFIT

Decline due to one-off losses on disposal of Splash and impairment on investment in SMART

GAMUDA Bhd posted a lower net profit of RM514 million in the year ended July 31 this year than RM602 million recorded last year.

This was due to a one-off RM300 million loss on the disposal of Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd (Splash) and a RM4 million impairment on an investment in Gamuda Water.

The group said excluding the one-off loss and last year’s RM98 million impairment on investment in Stormwater Management and Road Tunnel (SMART), it had achieved a record core net profit of RM818 million this year, up 17 per cent from RM701 million last year.

Revenue was also at a record high of RM7.2 billion, an increase of 26 per cent from RM5.7 billion last year.

The revenue and core net profit improvements were contributed mainly by high property sales in Gamuda’s projects in Vietnam and Singapore, as well as work progress from its ongoing construction projects.

Gamuda posted record property sales of RM3.6 billion for its financial year 2018, surpassing its RM3.5 billion target.

The property sales grew 50 per cent compared with RM2.4 billion last year, on the back of stronger sales from the Celadon City project in Ho Chi Minh City and Gamuda City in Hanoi, as well as GEM Residences in Singapore.

Overseas sales contributed 70 per cent to overall property sales.

Next year, Gamuda targets RM4 billion sales from its local and overseas projects.

For the fourth quarter, Gamuda posted a net loss of RM101 million from a net profit of RM103 million a year ago.

This was due to the one-off losses on disposal of Splash and impairment on investment in Gamuda Water.

Excluding those, Gamuda achieved a core net profit of RM203 million, up one per cent from RM201 million net profit for the same quarter last year.