MMC Corp Q1 net profit up 7.4pc

KUALA LUMPUR: MMC Corp Bhd recorded a 7.4% increase in net profit for the first quarter at RM55.1mil, despite revenue slipping marginally by 1.1% to RM925.2mil.

The group said the lower revenue was mainly due to the substantial completion of the Klang Valley Mass Rapid Transit (KVMRT)-Sungai Buloh-Kajang (SBK) Line in 2016, coupled with lower throughput volume at Pelabuhan Tanjung Pelepas (PTP), attributed to the change in network strategies of certain customers. 

This was moderated by progress from the KVMRT-Sungai Buloh-Serdang-Putrajaya Line and contribution from RAPID Material Offloading Facilities operations at Johor Port Bhd.

The group’s profit before zakat and taxation decreased marginally to RM92.4mil from RM95.5mil a year ago, also primarily due to lower throughput volume at PTP and substantial completion of the KVMRT-SBK Line.

“This was mitigated by the absence of Zelan Bhd’s effects on discounted receivables and unrealised loss on foreign exchange concerning the Meena Plaza project in Abu Dhabi, contributions from the KVMRT-SSP Line and better performance from Malakoff due to higher fuel margins,” it said in a filing to the stock exchange on Monday. 

The group said it remains positive of its prospects, driven by stable performances of its operating companies together with contribution from on-going construction projects.

It said the ports and logistics division is expected to register higher revenue across all the ports.

“Additionally, MMC Ports aims to realise operational and cost synergies as well as to achieve improvements in efficiency and productivity across the division.

“Substantial existing order-book provides earnings visibility for the Engineering & Construction division anchored by the KVMRT-SSP Line underground work and Project Delivery Partner (PDP) role for elevated portion,” it said.

In addition, it said, the earnings contribution from the engineering and construction division will be sustained by on-going projects such as the Langat 2 Water Treatment Plant, Langat Centralised Sewerage Treatment Project and its involvement as PDP for the Pan Borneo Sabah Highway.