PETALING JAYA: Construction outfit Gamuda Bhd
has built up enough cost buffer to weather the uncertainties stemming from volatile energy prices and is confident in achieving its RM50bil order book target by the end of this year.
CGS International (CGSI) Research which hosted a meeting between the company and institutional clients on Tuesday, said that out of the total RM44bil order book as of January, the local component of RM13.6bil – comprising infrastructure projects but excluding data centres – was billed on a lump-sum basis and is, therefore, more vulnerable to cost escalation.
Additionally, the overseas projects, comprising 61% of the total, were billed on a cost-plus basis.
“Gamuda said it has built in enough buffer to factor in the increases in raw material costs for these projects and, in our view, is unlikely to utilise it unless cost pressures escalate further.
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