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Thursday, December 18, 2008

Gamuda Q1 net profit down on weak property market

PETALING JAYA : Gamuda Bhd attributes its weaker performance in the first quarter ended Oct 31 to lower contributions from its property and construction divisions.

Its net profit in the quarter declined 37.5% to RM55.03mil from RM88.06mil in the previous corresponding quarter.

Pre-tax profit plunged 32% to RM72mil from RM106.4mil while revenue jumped 27% to RM614mil from RM482.4mil previously.

“Property sales have been weak as a result of the uncertain economic outlook,” it said in a statement.

However, it added, infrastructure construction work on the Yenso project in Vietnam was progressing well.

“The works on the public parks and lake clearing are in full swing. The works on the sewerage treatment plant have commenced with the award of the civil works and the mechanical and electrical works contracts,” it said.

Sales of certain commercial parcels for development had been delayed due to the difficulty in obtaining financing facilities for new investments worldwide, it said, adding: “The parties are expected to proceed with their investments as and when the financial markets normalise.”

On its electrified double-tracking railway project, it said the work progress achieved to-date was 18%, with 83% of the contract works and services (including the Electrification System Works) awarded to various bumiputera and non-bumiputera sub-contractors and suppliers.

Under the terms of the contract signed by the project company and the Government, 95% of the land should be handed over by now but, so far, only 61% has been handed over. The project faces potential delay in land acquisition, especially in Penang.

“Up to now, the delay in project completion due to the land acquisition is estimated at one year,” it said.

By The Star (by Eileen Hee)

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