The job was awarded to their JV company John Holland Gamuda Joint Venture (JHGJV) for the M1 Motorway extension to Raymond Terrace: Black Hill to Tomago Works.
The design and construct contract from Transport for New South Wales, the procurement entity for the New South Wales (NSW) government, is expected to generate RM1.21 billion revenue for the group.
“Planning and detailed design commences immediately with site investigations and utilities work in mid-2023,” Gamuda said in a filing with Bursa Malaysia today.
It said the scope of work includes 10km of greenfield dual carriageway motorway between the M1 Motorway at Beresfield and Tomago as well as major interchanges at Black Hill, Tarro and Tomago.
The JV company would also need to construct nine bridges including a viaduct approximately 2.6km long across the Hunter River and floodplain, it said.
It added the project would create social benefit initiatives within the local community and wider Hunter Region of NSW during construction.
John Holland owned 60% equity interest in JHGJV, with the remaining 40% held by Gamuda.
Trading of Gamuda’s shares and structured warrants on Bursa Malaysia was halted with effect from 11.18am today.
In a separate filing, the group said trading would resume at 2.30pm today. Gamuda’s share price rose 8 sen to RM3.74 at 2.44pm, valuing the group at RM9.75 billion.
This was the second major piece of good news for Gamuda in less than a week. Last Friday it posted an all-time high quarter earnings of RM1.17 billion in its first quarter ending Oct 31, 2022 (Q1 FY2023) from RM152.4 million a year ago after disposal of its highway assets.
For the financial year ending July 31, 2023, a special dividend of 38 sen per share was declared following the disposal of the highways, payable on Dec 23, and a first interim dividend of 6 sen per share payable at a later date to be determined. This makes it a dividend windfall of 44 sen for shareholders.
MIDF Research said Gamuda’s outstanding construction order book remains at a record high of RM14.8 billion, giving it earnings visibility up to FY2026 or FY2027, mainly from overseas jobs.
“The overseas jobs, which is now at RM11.6 billion or 78% of its order book, out of which RM8 billion is from Australia. The group also has RM2.1 billion worth of jobs in Taiwan and RM1.5 billion in Singapore and the remaining RM3.2 billion in Malaysia.
“We are fairly confident that the company is able to hit the target of securing RM25 billion worth of new jobs in two years. Gamuda’s tender win rate is about 40%,” it said in a recent research note.