MMC’s net profit jumps 106% on strong port and engineering operations

By RAHIMI YUNUS / Pic By TMR

MMC Corp Bhd posted a higher net profit in the third quarter ended Sept 30, 2018 (3Q18), as a result of stronger performances from the port and engineering divisions.

Net profit for the conglomerate rose 106% year-on-year (YoY) to RM38.9 million from the RM18.9 million recorded a year ago.

The improvement is attributed to the higher cumulative work progress from the Mass Rapid Transit Line 2 (MRT2) or the Sungai Buloh-Serdang-Putrajaya Line, consolidation of Penang Port’s revenue, higher volume handled at Port of Tanjung Pelepas and work progress at the Langat Sewerage Treatment Project (LSTP).

The group told Bursa Malaysia in an exchange filing yesterday that its profit before zakat and taxation increased 33.7% YoY to RM88.8 million as there was no one-off provision for impairment of RM98 million on the Stormwater Management and Road Tunnel or SMART as a result of lower projected traffic volume.

For the January to September period, the utilities and infrastructure company saw revenue increased by 17.1% YoY from RM2.93 billion to RM3.42 billion, largely contributed by the higher cumulative work progress for the Sungai Buloh-Serdang-Putrajaya Line and LSTP.

The engineering division’s revenue increased by 63.1% to RM1.17 billion from the RM720 million recorded in the first nine months of 2017.

MMC’s ports and logistics division is expected to record stable volume across all the facilities, while the group’s energy and utilities division — namely Malakoff Corp Bhd and Gas Malaysia Bhd — continued to report positive contributions.

Substantial orderbook and earning visibility from the engineering division anchored by the MRT2 underground works and the elevated portion was also part of the raised figures.

MMC will further improve the performance of its ports and logistics division through operational and cost synergies.

The company said its involvement as the project delivery partner for the Pan-Borneo Highway in Sabah is expected to further support the group’s revenue.

“We are optimistic of our performance and will continue to improve our operations, intensify our cost optimisation efforts and explore new business opportunities,” group MD Datuk Seri Che Khalib Mohamad Noh (picture) said in a statement yesterday.