MMC Corp's earnings boosted by exceptional gain from re-listing of Malakoff
KUALA LUMPUR: MMC Corporation Bhd saw its earnings surge to RM1.35bil in the second quarter ended June 30, 2015 – boosted by an exceptional gain from the re-listing of independent power producer Malakoff Bhd in May.
MMC said on Wednesday the earnings were sharply higher than the RM165.45mil a year ago. Earnings per share were 44.32 sen compared with 5.43 sen.
“The group recorded significantly higher profit before zakat and taxation of RM1.455bil in the current quarter compared with RM234.7mil in the immediate preceding quarter, mainly attributed to the exceptional gain of RM1.344bil arising from Malakoff’s May 2015 listing debut on Bursa Malaysia,” it said.
MMC’s revenue was lower at RM1.44bil compared with RM2.86bil a year ago due to the deconsolidation of Malakoff’s results following its listing debut.
For the first half ended June 30, 2015, its earnings were RM1.445bil compared with RM189.02mil in the previous corresponding period. Again, the strong earnings were due to the exceptional gain of RM1.344bil arising from Malakoff’s May listing.
Its revenue fell 27.6% to RM3.43bil compared with RM4.72bil a year ago.
“The decrease was mainly due to deconsolidation of Malakoff’s results and lower work progress recorded from Klang Valley Mass Rapid Transit (KVMRT) Sungai Buloh-Kajang (SBK) Line project largely upon completion of tunnelling drive works in April 2015,” it said.
On the energy & utilities segment, MMC said there was a decline of 25.5% in revenue to RM2.051bil from RM2.753bil a year ago primarily due to deconsolidation of Malakoff’s results.
As for the ports & logistics, the segment saw a 10.3% increase in revenue of RM884.4mil versus RM801.90mil.
The reasons were mainly due to higher throughput handled at Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) following gradual progress from 2M alliance between Maersk Line and Mediterranean Shipping Company (MSC), launched in January 2015.
The segment recorded profit before zakat and taxation of RM168.90mil, up 40% compared with RM120.60mil a year ago. This was in line with the increase in throughput handled at PTP coupled with lower operating costs incurred largely from fuel costs as well as repairs and maintenance works.
MMC said its engineering & construction segment recorded a 50% fall in revenue to RM458.30mil from RM916.10mil mainly due to lower work progress recorded from KVMRT-SBK line project largely upon completion of tunnelling drive works in April 2015 and completion of Electrified Double Track Project in November 2014.
The segment recorded lower profit before zakat and taxation of RM112.10mil compared with RM165.30mil a year ago.
MMC said its investment holding, corporate & others segment recorded a decrease of 88.3% in revenue to RM29.90mil from RM255.60mil. The main reason was due to the recognition of sale of land in 2014 by SACSB as part of the overall development of Airport City plan.
The segment recorded loss before zakat and taxation of RM220.4mil from a year ago mainly attributed to provision for impairment on claims recovery of a discontinued project in Middle East.
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