PETALING JAYA: MMC Corp Bhd’s net profit jumped 70.3% to RM66.34 million in the third quarter ended Sept 30, 2019 against RM38.94 million reported in the corresponding quarter of the previous year.
The higher earnings were attributed to higher work progress from MRT Line 2, higher contribution from Malakoff, disposal gain of an assets, lower administrative cost and oil spill compensation at Pelabuhan Tanjung Pelepas (PTP).
However, these were offset by no recognition of negative goodwill of RM51.7 million upon finalisation of Penang Port Sdn Bhd’s (PPSB) purchase price allocation exercise, higher operating expenses at PPSB as well as higher finance cost and depreciation due to the adoption of MFRS 16 “Leases”.
MMC’s revenue increased 32% to RM1.25 billion for the quarter under review.
According to the group’s bursa disclosure, its ports and logistics posted a RM28.7 million increase in profit before zakat and taxation (PBZT) to RM314.7 million in Q3.
The energy & utilities division’s PBZT increased to RM107 million from RM93 million, while the engineering division saw a 11.1% increase in PBZT to RM192 million from RM173 million.
For the cumulative nine-month period, MMC reported a net profit of RM187.08 million, an 86.4% increase from RM100.37 million reported in the same period last year, while revenue rose 5.7% to RM3.62 billion from RM3.42 billion.
Moving forward, MMC expects its continuous investments into the ports’ infrastructure, capacities and capabilities along with execution of operational plans will deliver positive results for its ports & logistics division.
The group highlighted that the substantial existing order book provides earnings visibility for its engineering division anchored by the MRT2 project.
Meanwhile, its energy & utilities division is expected to contribute positively from the group’s associated companies, namely Malakoff and Gas Malaysia.
Based on the foregoing, the MMC expects the financial performance for 2019 to be satisfactory.
“We are committed to delivering continuous growth and will continue to focus on cost optimisation and operational efficiency moving forward.” said group managing director Datuk Seri Che Khalib Mohamad Noh in a press statement.
