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MMC net profit slides to RM20mil

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  • MMC net profit slides to RM20mil

    But revenue rises on MRT work progress and consolidation of Penang Port revenue

    KUALA LUMPUR: MMC Corp Bhd posted a net profit of RM20.08mil for the second quarter ended June 30, 2018, 66.4% less that what was recorded in the previous corresponding quarter.

    This comes despite revenue rising 27.1% to RM1.2bil from RM944.43mil in the comparative quarter on the back of work progress at the KVMRT-SSP Line and the effect from consolidation of Penang Port’s revenue.

    The group said profit before taxation and zakat slid to RM40.1mil vs RM101.5mil in the same quarter in 2017 due to lower contribution from Johor Port Bhd and Northport (Malaysia) Bhd and a lower share of profit from Malakoff.

    Malakoff in turn experienced lower contribution from Segari Energy Venture’s plant and lower fuel margin at its coal plants.

    For the six months to June 30, the group achieved revenue of RM2.48bil, 32.7% more than in the year-ago period, while net profit came in at RM61.42mil, 47% less than in 1H’FY18.

    In the six months period, the port and logistics segment saw revenue slipped 1.6% to RM1.39bil. This was due to lower contribution from RAPID material offloading facility operations at Johor Port as the project nears completion and the lower container volume handled at Northport as a result of a shift in global shipping alliances.

    Profit before zakat and taxation came in at RM136.6mil compared with RM241.9mil in the 2017 period.

    In energy and utilities, profit before zakat and taxation slipped to RM63.5mil versus RM97.7mil a year earlier due to a lower share of profit from Malakoff.

    The engineering segment posted a 152.3% jump in revenue to RM1.04bil from RM413.5mil on progress in the KVMRT-SSP Line and Langat Sewerage Treatment project.

    The segment recorded an increase of 79.7% in profit before zakat and taxation to RM152.2 mil from RM84.7 mil a year ago mainly due to progress from KVMRT-SSP Line, the statement said.

    In the investment holding division, revenue grew 11.6% due to higher passenger volume at Senai airport although losses before zakat and taxation grew RM19mil to RM248.9mil due to higher finance costs.

    Looking ahead, MMC said the acquisition of the balance 51% interest in Penang Port is expected to contribute positively to the division’s earnings.

    “The acquisition allows the Group to establish a strong foothold in the Northern region of Peninsular Malaysia and complement the Group’s strategic presence throughout the Straits of Malacca,” it said.

    Meanwhile, MMC said the engineering division’s substantial existing order book provides earnings visibility for the engineering division, anchored by the KVMRT-SPP Line underground work and Project Delivery Partner (PDP) role for the elevated portion.

    “Furthermore, the earnings contribution from the engineering division will be sustained by on-going projects, namely Langat 2 Water Treatment Plant, Langat Centralized Sewerage Treatment Project and our involvement in the PDP role for the Pan Borneo Sabah Highway.”