MMC FY20 net profit up 47% to RM375m

MMC Corp said the higher profit in FY20 was mainly due to higher container volume handled at Port of Tanjung Pelepas (PTP) and other divisions,

KUALA LUMPUR: MMC Corporation Bhd recorded a strong set of results with net profit at RM375.29mil in the financial year ended Dec 31, 2020 boosted by its port and its construction operations.

The utilities and infrastructure group announced on Friday the net profit was up 47% from RM255.16mil in FY19. Profit before zakat and taxation (PBZT) rose by 24% to RM646mil from RM522mil in FY19.

The higher profit was mainly due to higher container volume handled at Port of Tanjung Pelepas (PTP) and Northport (Malaysia) Bhd, higher contribution from Klang Valley Mass Rapid Transit Sungai Buloh-Serdang-Putrajaya Line (KVMRT-SSP Line) upon completion of tunnelling works, sale of land at Senai Airport City (SAC) and lower operating expenses and finance costs across the group.

However, these were partially offset by lower passenger and cargo volumes at Senai Airport Terminal Services Sdn Bhd and provision for impairment of a discontinued project’s receivables.

However, its revenue dipped to RM4.49bil compared to RM4.71bil in FY19 due to lower work progress from KVMRT-SSP Line, lower passenger and cargo volumes at Senai International Airport, and lower volume handled at Penang Port Sdn Bhd (Penang Port).

These, however, were partially offset by higher volume handled at PTP and Northport, as well as sale of land at SAC.

MMC said the ports & logistics division’s revenue rose by 1.6% to RM3.23bil from RM3.18bil in FY19 mainly due to higher volume handled at PTP and Northport, offset by lower volume handled at Penang Port.

The division recorded higher PBZT of RM599mil compared with RM449mil in FY19 due to higher volume handled at PTP and Northport, as well as lower operating expenses across the division.

MMC said the energy and utilities division recorded lower PBZT of RM155mil when compared with RM164mil in FY19 due to lower contribution from Malakoff Corporation Bhd.

However, the fall was cushioned by full-year consolidation of contribution from Alam Flora Sdn Bhd, higher contributions from its associates, lower operations and maintenance costs, compensation received from the settlement agreement reached with its contractor and no net impairment losses of its associate, Kapar Energy Ventures Sdn Bhd.

The engineering division’s revenue fell by 18.3% to RM1.16bil from RM1.42bil mainly, due to lower work progress from KVMRT-SSP Line, affected by the unprecedented Movement Control Order (MCO).

However, at the PBZT level, it rose by 11.4% to RM322mil from RM289mil due to higher contribution from KVMRT-SSP Line upon completion of tunnelling works.

In the fourth quarter, MMC’s net profit jumped 163% to RM179.12mil from RM68.08mil a year ago. Its revenue rose toRM1.29bil from RM1.09bil. Earnings per share were 5.90 sen compared with 2.20 sen.

On the outlook for 2021, MMC group managing director Datuk Seri Che Khalib Mohamad Noh said with better and timely measures and response to the pandemic spread, the group views that the anticipated economic recovery is attainable.

“We are committed to strengthening our financial and market positions by focusing on operational excellence and cost optimisation, whilst exploring new business opportunities.

“Overall, the group expects to sustain, if not improve its financial and operational performance for FY2021,” he said.

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