Gamuda

Re: Gamuda

Postby winston » Thu Oct 11, 2018 8:15 am

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MMC Gamuda pledges “open book approach” if fresh negotiation can be held

by Izwan Idris

“It is our express hope that the government would invite us back to the negotiating table as part of that review process, and we shall adopt an open-book approach with the appointment of an international engineering consulting firm that possesses the necessary experience and track record in assessing tunnelling works around the world, and as such, be in the best position to re-examine where savings can be derived,” MMC-Gamuda said.

“Our request in return for the open-book approach is that our intellectual property rights and commercially sensitive information are duly respected as such, by the said reviewing consultant and all reviewing parties, during the review process.”


Source: The Star

https://www.thestar.com.my/business/bus ... EDw3qUV.99
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Re: Gamuda

Postby winston » Sat Oct 27, 2018 5:07 am

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MMC-Gamuda to continue underground MRT2 with further cost cuts

KUALA LUMPUR: The Ministry of Finance (MoF) announced today that MMC-Gamuda would continue the Mass Rail Transit Sungai Buloh-Serdang-Putrajaya Line (MRT2) project, with a larger cost reduction for the underground works.

It's Minister, Lim Guan Eng said the decision was made after the final round negotiations which resulted in MMC-Gamuda agreeing to increase the cost reductions of the underground works to RM3.6 billion from RM2.13 billion.

“This means that the construction cost (excluding interest during construction, land acquisition costs and other costs) of MRT2 has been successfully reduced by RM8.82 billion or 22.4 per cent from RM39.35 billion to RM30.53 billion,” he said in a statement here, today.

MMC-Gamuda had previously agreed to cut the cost of the above-ground works by RM5.22 billion, which was accepted by the MoF.

However, its offer to reduce underground works cost by only RM2.13 billion was rejected by the MoF and decision was made for the contract to be terminated and be re-tendered.
Today, the Cabinet agreed to MMC-Gamuda's new offer and the cost rationalisation exercise.

Source: Bernama

https://www.thestar.com.my/business/bus ... GAeJ4Hr.99
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Re: Gamuda

Postby winston » Mon Oct 29, 2018 9:24 am

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Gamuda (GAM MK)
MRT2 UG Recommencement – A Consolation Prize For Gamuda


Following the recent re-negotiations, the government has allowed the MMC-Gamuda JV to resume construction of the MRT UG section, which will lift its orderbook by RM3.2b, and earnings are expected to be enhanced by >10% p.a. in FY19-21.

Meanwhile, Gamuda will continue to be the turnkey contractor for the AG package.

To date, the JV has completed 40% and 35% of the UG and AG packages respectively.

Upgrade to HOLD. Target price: RM2.60. Entry price: RM2.30.

Source: UOBKH

https://research.uobkayhian.com/content ... 772260444a
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Re: Gamuda

Postby winston » Mon Oct 29, 2018 9:51 am

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Factoring in a less negative outcome for MRT 2

MRT 2 UG scope will be cut by 38%. Renegotiation is completed.
The final outcome is less negative than our base case cut of 60%.
FY19-21F EPS up by 3.5-7.5%. Reiterate Reduce but with a higher TP

Source: CIMB

https://brokingrfs.cimb.com/jcRaM77YmgK ... 3FlAw2.pdf
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Re: Gamuda

Postby winston » Tue Oct 30, 2018 8:54 am

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MRT2 cost reduction remains negative for Gamuda

CGS-CIMB Research, which retained its “reduce” call on the counter, noted that the RM3.6bil decrease in contract price for the MRT2 underground (UG) portion was less severe than its earlier base-case assumption of a RM6bil reduction or 60% cut to contract price.

“Putting this in perspective, the actual 38% cost reduction is still more than the maximum 22% acceptable quantum proposed by MMC-Gamuda JV in the earlier negotiation rounds,” it said.


Finance Minister Lim Guan Eng said in a statement that the Cabinet had accepted an offer by MMC-Gamuda to reduce the cost of the project’s underground works by RM3.6bil, or 21.5%, to RM13.11bil.

Earlier the joint venture had offered a cost reduction of only RM2.13bil, or 12.7%, for the underground works. For the above ground (AG) portion, the 23% cost reduction remains intact.


UOB Kay Hian Research noted that the anticipated cost savings for the UG section was underpinned by reduced scope of work coupled with the removal of two stations, and that margins will be squeezed to mid-single digits of 5%-6% compared to 15% previously.


Maybank: “However, a replenishment wildcard could come from the Penang Transport Master Plan (PTMP),” it said. The research house upgraded the counter to “hold” from “sell,” but lowered its target price to RM2.70 from RM2.90 due to its discount peg on the group’s concession business.

It added that the shelving of two stations in Bandar Malaysia was insufficient to provide the RM3.6bil cost reduction and expects the remaining UG package to be completed at relatively lower margins.


Source: The Star

https://www.thestar.com.my/business/bus ... aUGExVZ.99
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Re: Gamuda

Postby winston » Tue Oct 30, 2018 2:50 pm

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Gamuda, MMC Corp down after jointly owned unit served arbitration notice

by Surin Murugiah

Yesterday, the companies in separate filings to Bursa Malaysia said MMC-Gamuda Joint Venture Sdn Bhd (MGJV) was served an arbitration notice premised on Emrail’s alleged dispute arising out of the conditions of contract dated Dec 23, 2010 for the construction, completion, testing, commissioning and maintenance of track works for the EDTP.


Source: theedgemarkets.com

http://www.theedgemarkets.com/article/g ... ion-notice
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