Higher top-line growth boosts MMC Corp's Q3 earnings

PETALING JAYA: MMC Corp Bhd’s net profit more than doubled to RM105.89 million for the third quarter ended Sept 30, 2016 from RM47.81 million in the previous corresponding period, driven by higher top-line growth.

Revenue for the quarter under review rose 31.8% to RM888.77 million from RM674.54 million.

In a filing with the stock exchange, the group said it remains positive on its prospects on stable performance of its operating companies and contributions from ongoing construction projects.

The ports and logistics division is expected to register higher revenue on improved performances at Northport and Johor Port with higher container volume.

MMC said the energy and utilities division will continue to account for positive contribution from its two associates, Malakoff Bhd and Gas Malaysia Bhd.

For the engineering and construction division, the group said it will be supported by substantial existing order book, which is anchored by the MRT 2 underground work and the project delivery partner (PDP) role for the elevated portion. It will also be boosted by higher progress of the on-going projects namely Langat 2 water treatment plant, Langat centralised sewerage treatment project and its involvement in the PDP role for the Pan Borneo Highway portion in Sabah.

“Moving forward, we will remain prudent with our financial management and continue to reduce our operating expenses in order to maximise profitability and increase long-term value for our shareholders”, said MMC group managing director Datuk Seri Che Khalib Mohamad Noh.

For the first nine months of the year, MMC’s net profit, plunged 81.1% to RM282.25 million from RM1.49 billion, due to the absence of exceptional gains of RM1.34 billion from Malakoff’s listing in May 2015. Revenue came in at RM2.78 billion, 32.3% lower than RM4.1 billion in the same period a year ago.