Lower tax expenses boost MMC’s first-quarter earnings

PETALING JAYA: MMC Corp Bhd’s net profit rose by 7.4% in the first quarter ended March 31, as the group’s tax expenses declined from to RM26.89 million from RM29.10 million.

The group made a net profit of RM55.1 million for the quarter compared with RM51.3million in the corresponding quarter last year.

Profits before tax dipped by 3.3% to RM92.4 million from RM95.6 million due to substantial completion of the Klang Valley Mass Rapid Transit Sungai Buloh-Kajang Line last year coupled with lower throughput volume at Pelabuhan Tanjung Pelepas (PTP) attributed to change in network strategies of certain customers.

This was in line with the fall in revenue for the quarter under review to RM 925.2 million from RM936.3 million.

In a filing with the stock exchange, MMC’s board of directors said that its prospects look positive, driven by stable performance of its operating companies together with contribution from on-going construction projects.”

“The completion of 49% acquisition in Penang Port Sdn Bhd (PPSB) and the proposed acquisition of the remaining 51% equity interest is expected to contribute positively to the group’s future earnings as it allows full consolidation of PPSB as a wholly-owned subsidiary,” MMC’s board said.

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,” the board added.

MMC’s ports and logistics division, which is eyeing higher revenue in all of its ports, aims to realise operational and cost synergies and achieve improvements in efficiency and productivity across the division.

Its engineering and construction division sees prospects for elevated earnings with its current orderbook consisting of projects like the KVMRT Sungai Buloh-Serdang-Putrajaya Line underground work and project delivery partner (PDP).

Going forward it is expected to sustain with projects such as the Langat 2 water treatment plant, Langat Centralised sewerage treatment project and its role as the PDP for the Pan Borneo Sabah Highway.

Meanwhile, MMC’s associate companies Malakoff and Gas Malaysia will continue to contribute to its energy and utilities division.