Gamuda said this year’s performance would be largely driven by overseas construction activities.
PETALING JAYA: Gamuda Bhd
has enlarged its order book with the clinching of the A$1.6bil (RM5bil) Metronet high-capacity signalling project to upgrade and maintain the train control systems on Perth’s rail networks in Australia.
In a filing with Bursa Malaysia, the engineering and construction giant said the project was awarded by the Public Transport Authority of Western Australia, to an alliance comprising of Gamuda’s wholly-owned subsidiary in Australia, DT Infrastructure Pty Ltd and Alstom Transport Australia Pty Ltd, a wholly-owned subsidiary of Alstom France.
The job, which is the world’s largest signalling project by route length, reinforces Gamuda’s strategic position in Australia and showcases its capability to deliver large-scale, transformative infrastructure solutions.
DT Infrastructure will hold a 46% stake in the joint venture with Alstom Transport to rest.
“The contract’s duration is for over 10 years with an expected revenue of RM2.3bil,” it said.
It is expected to contribute positively to Gamuda’s revenue and earnings for the financial year ending July 31, 2025.
The job consisted of the design, supply, installation, testing, commissioning and maintenance of a new automatic train control system to replace the existing public transport authority signalling and train control systems.
Upon completion, the project will enable a 40% increase in network capacity, energy saving benefits, leading cybersecurity and future proofing of the network for growth with minimum disruption to commuters.
Alstom Transport is known for its innovations in rail solutions, including high-speed trains, metros, trams, and signalling systems.
It has been operating in Australia for more than 100 years and involved in several significant rail projects across Australia, namely Sydney metro, Melbourne’s high capacity metro trains, Queensland’s new generation rollingstock and Adelaide’s electrification and rolling stock.
The third quarter ended April 30, 2024, was underpinned by a large construction order book of RM24bil and unbilled property sales of RM6.7bil.
The group also has a comfortable net gearing of 35%, below its self-imposed gearing limit of 70%.
Gamuda said this year’s performance would be largely driven by overseas construction activities as projects in Australia, Taiwan and Singapore continue to pick up pace.
It would be backed by the full-year contribution of the newly acquired Australian transport projects business of Downer Transports Projects (acquisition completed in June 2023), construction of several data centres and property sales including higher contribution from newly launched quick-turnaround projects of the property division.
Gamuda’s ongoing projects in Australia include Sydney Metro West – Western tunnelling package, Coffs harbour bypass project and the M1 motorway extension to Raymond terrace: Black Hill to Tomago package. The first two projects’ overall cumulative construction progress as at the end of April was at 62% and 35% respectively.
According to Gamuda, project delivery remained on schedule with design packages submissions at 93% for the third project. Gamuda’s shares closed three sen higher at RM8.28 on the news yesterday, giving it a market capitalisation of RM22.96bil.
