MMC disposes MMC Oil & Gas Engineering for RM50mil

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KUALA LUMPUR: MMC Corp Bhd is selling its 100% beneficial interest in MMC Oil & Gas Engineering Sdn Bhd, an engineering design consultancy licensed by Petroliam Nasional Bhd, for RM50mil in cash to Melati Pertiwi Sdn Bhd.

“The proposed disposal will enable the MMC group to streamline its business operations and focus on the core businesses, namely ports and logistics, energy and utilities, and engineering and construction,” the company told Bursa Malaysia on Thursday.

“It aligns with the MMC group’s asset monetisation programme for noncore assets as well as taking into consideration that the oil and gas industry worldwide is presently facing a downturn where the prolonged lower oil price has hit the industry hard.”

MMC said MMC Oil & Gas Engineering’s contributions to the group’s consolidated revenue and profit were currently minimal.

The group is expected to make a one-off gain of RM16.5mil from the proposed
sale.

MMC said the cash proceeds of RM50mil from the disposal would be used to repay bank borrowings.

The proposed disposal is expected to be completed by the first half of this year.