MMC Q2 earnings down 66% to RM20.08m

PETALING JAYA: MMC Corp Bhd's net profit for the second quarter ended June 30, 2018 fell 66.4% to RM20.08 million from RM59.81 million a year ago due to lower contribution from Johor Port Bhd (JPB) and Northport (Malaysia) Bhd (NMB), as well as lower share of profit from Malakoff Corp Bhd.
However, MMC's revenue saw a 27.1% increase to RM1.20 billion compared with RM944.43 million in the previous year's corresponding period, thanks to work progress from Klang Valley Mass Rapid Transit - Sungai Buloh-Serdang-Putrajaya (KVMRT-SSP) Line and effect from consolidation of Penang Port Sdn Bhd (PPSB)'s revenue.
For the six months period, the group's net profit dropped 47% to RM61.42 from RM115.94 million. Revenue came in at RM2.48 billion, 32.7% higher than the RM1.87 billion reported in the same period a year ago.
Moving forward, MMC expects the ports & logistics division to record stable volume across all the ports.
Meanwhile, the energy & utilities division will continue to contribute positively from the group’s associated companies, namely Malakoff and Gas Malaysia.
MMC also noted that its existing order book provides earnings visibility for the engineering division, anchored by the KVMRT-SSP Line underground work and project delivery partner role for elevated portion.
"Furthermore, the earnings contribution from engineering division will be sustained by ongoing projects namely Langat 2 water treatment plant, Langat centralised sewerage treatment project and our involvement in the PDP role for Pan Borneo Highway Sabah."
MMC shares closed 4 sen or 2.7% lower at RM1.46 on 28,300 shares traded.