MMC Corp quarterly net profit up 7% to RM55.1mil

KUALA LUMPUR: MMC Corp Bhd saw its net profit increase 7% for the first quarter to RM55.1mil despite revenue dipping marginally by 1.1% to RM925.2mil.

The group with diversified operations including ports, energy and construction 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 Port of 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.

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.