By IZZAT RATNA / Pic By TMR

MMC Corp Bhd expects the ports and construction divisions to deliver a better performance, following the recent stake acquisition in Penang Port Sdn Bhd (PPSB) and ongoing key infrastructure projects undertaken by the group.

The country’s leading port, logistics, utility and construction conglomerate had forecast higher revenues from its ports and logistics divisions following the PPSB acquisition.

“The completion of the 49% acquisition in 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.

“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 Melaka,” the company told Bursa Malaysia in its quarterly financial filing yesterday.

The company’s ports and logistics divisions, said MMC, will benefit from operational and cost synergies.

MMC’s unit, MMC Port Holdings Sdn Bhd, acquired the remaining 51% stake in PPSB for RM220 million in cash in April this year.

The company also expects earnings contribution from the ongoing Langat 2 Water Treatment Plant, Langat Centralised Sewerage Treatment project and the Pan Borneo Sabah Highway.

Meanwhile, MMC recorded a revenue of RM944 million for the second-quarter (2Q) ended June 30, 2017, compared to RM950 million recorded in the corresponding quarter a year ago.

The RM944.4 million 2Q revenue was higher than the RM925.2 million recorded in the preceding quarter following the completion of the Klang Valley Mass Rapid Transit (KVMRT) Sungai Buloh-Kajang (SBK) Line in July.

Net profit declined to RM62.9 million for the April-June period compared to RM125 million posted a year ago, due to the absence of the exceptional gain from land sale at the Senai Airport Free Industrial Zone, substantial completion of the KVMRT SBK Line and lower contribution from Tanjung Bin Energy Sdn Bhd’s power plant.

The company said this was partially moderated by progress from KVMRT Sungai Buloh-Serdang-Putrajaya line Line and Langat Sewerage Treatment project, as well as higher throughput handled at Johor Port Bhd and Northport (M) Bhd.

“The group remains resilient on the back of stable performances within our operating companies and we are committed to delivering continuous growth, driven by our port operations and nation building projects,” said group MD Datuk Seri Che Khalib Mohamad Noh.

Revenues from the ports and logistics division rose 4.7% to RM1.41 billion in 2Q17 compared to RM1.35 billion recorded a year ago.

MMC’s share price rose five sen at the end of trading yesterday to close at RM2.38, valuing the conglomerate at RM7.24 billion.