MMC’s Q3 net profit slides on one-off provision

PETALING JAYA: MMC Corp Bhd’s net profit in the third quarter ended Sept 30, 2017 plunge 78.9% to RM22.29 million, from RM105.89 million in the previous corresponding quarter.

In a filing with Bursa Malaysia today, the group said this was mainly due to one-off provision for impairment of RM98 million on SMART as a result of lower projected traffic volume and the absence of gain on disposal of land from MMC Tepat Teknik Sdn Bhd.

However, MMC said these were compensated by higher throughput handled at Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) and Johor Port Berhad (JPB) and forfeiture of deposit on land sale transaction at Senai Airport City.

During the quarter, its revenue increased 18.8% to RM1.05 billion, compared with RM888.77 million in the same period last year, mainly due to higher work progress from KVMRT-SSP Line and Langat sewerage treatment project, coupled with higher volume handled at PTP and JPB.

For the nine months period, MMC’s net profit dropped 50.3% to RM140.35 million, against RM282.25 million a year ago.

MMC said the group remains positive of its prospects driven by good performances of its operating companies together with contribution from on-going construction projects.

The group said its ports and logistics division is expected to register higher revenue across all the ports, adding its operational and cost synergies would further enhance the financial performance of its ports and logistics division.

MMC closed slightly higher by 0.51% to RM1.98 today with 1.74 million shares done.