corporate

Gamuda bags RM1.77bil Singapore Land Transport Authority job

KUALA LUMPUR: Gamuda Bhd has bagged a RM1.77 billion (S$510 million) job to design and construct the West Coast station and tunnels for the Singapore Land Transport Authority (LTA).

In a statement today, Gamuda said this is its first independent venture in Singapore without joint venture partners.

The West Coast station tunneling package is part of the new Cross Island Line Phase 2 (CRL 2), the eighth mass rapid transit (MRT) line in Singapore, which comprises 15 kilometres with six underground stations.

The West Coast station will be constructed along West Coast road.

Construction works are expected to start in the first quarter of 2024, with passenger service for CRL 2 targeted to start in 2032.

The West Coast station and tunnels is Gamuda's second railway project in Singapore (after Defu Station and Tunnels); and its third infrastructure project (after the Gali Batu Multi-Storey Bus Depot), from LTA.

Meanwhile, the group posted a net profit of RM195 million for the first quarter ended Oct 31, 2023 (Q1 FY24) after excluding highway earnings of RM1 billion from the sale of highways last year.

The group's construction and property earnings grew 35 per cent to RM195 million in Q1FY24 compared with Q1FY23's earnings of RM145 million on the back of higher contribution from overseas projects.

This was on more than double of revenue of RM2.8 billion in the quarter, compared with RM1.3 billion from a year ago.

Gamuda anticipates that this year's performance will be driven by overseas construction activities as projects in Australia and Taiwan continue to pick up pace; full year contribution of the newly acquired Australian transport projects business of Downer Transports projects (acquisition completed on June 20, 2023) and property sales including higher contribution from newly launched quick-turnaround projects (QTP) of the property division.

The group has a large construction orderbook of RM26 billion and unbilled property sales of RM6.7 billion.

Along with a healthy balance sheet with a comfortable net gearing of 25 per cent, well below its self-imposed gearing limit of 70 per cent.

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