Profit seen for PTP next year


  • Business
  • Thursday, 03 Jul 2003

MALAYSIA Mining Corp Bhd (MMC) expects 50.1%-owned unit Port of Tanjung Pelepas Sdn Bhd (PTP) to post a profit next year and to contribute to group earnings by 2005, chairman Syed Abdul Jabbar Shahabudin said. 

“PTP is a strategic acquisition for MMC rather than an immediate earnings contributor,” Abdul Jabbar said in the company's annual report. 

“While a loss was incurred as expected for the year ended Dec 31, 2002, due to the funding cost of its development, PTP registered a positive EBITDA in the same period and is expected to register a profit by 2004,” he added. “The year 2005 will see PTP contributing positively to group earnings. “  

Throughput at the port is expected to rise 30% year-on-year to 3.5 million TEUs (20-ft equivalent units) in 2003 with the entry of Taiwan’s Evergreen Marine Corp, in addition to the current operations of Maersk Sealand, he said. 

MMC’s 22.8% stake in independent power producer Malakoff Bhd and its 41.8% effective interest in Gas Malaysia Sdn Bhd is expected to continue yielding commendable revenue in the coming years, Abdul Jabbar said. 

He said Malakoff was increasing further its power generation capacity amid an anticipated rise in electricity demand this year, while Gas Malaysia, which distributes natural gas to homes, commercial and industrial users, expected the recent gas tariff reduction to raise demand. 

MMC’s move to buy the outstanding MMC Engineering Group Bhd shares will make its rationalisation programme more flexible, while allowing the group to tap synergistic benefits and economies of scale, he said. 

Its 52.3%-owned unit Tronoh Mines Malaysia Bhd plans to buy a 19.6% stake in IJM Corp Bhd, as well as the entire stake in Zelan Holdings (M) Sdn Bhd, he said. 

The move will strengthen Tronoh’s position in the construction business, enhance its earnings profile and improve shareholder value, he added. 

Going forward, Abdul Jabbar said the group’s outlook was “promising” as it consolidated and expanded its core business amid a favourable economic growth forecast and strong economic fundamentals. – AFX  

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