MMC Corp’s 4Q18 earnings jump 60%


MMC Corp Bhd posted a 59.82% year-on-year (YoY) rise in net profit to RM119.72 million for the fourth quarter ended Dec 31, 2018 (4Q18).

According to the company, this is due to work progress on its rail projects and improved volumes at Port of Tanjung Pelepas (PTP) and the consolidation of financials of Penang Port Sdn Bhd (PPSB).

Revenue for the period rose 29.27% YoY to RM1.59 billion, while earnings per share (EPS) stood at 3.9 sen, its exchange filing yesterday noted.

For the financial year ended Dec 31, 2018 (FY18), the utility, engineering, property and infrastructure company’s net profit increased 4.9% YoY to RM220.08 million or 7.2 sen EPS, while revenue grew 20.43% YoY to RM5 billion.

MMC said the increase in its full-year revenue was due to higher cumulative work progress from the Klang Valley Mass Rapid Transit-Sungai Buloh-Serdang-Put rajaya (KVMRT-SSP) Line, consolidation of PPSB’s revenue and higher volume handled at PTP.

The growth was partly offset by lower contribution from the the Refinery and Petrochemical Integrated Development project’s Material Offloading Facilities operations at Johor Port Bhd and lower container volume handled by Northport (M) Bhd.

The ports and logistics segment recorded a higher revenue of RM2.99 billion in the year due to higher volume handled at PTP and the effect from full consolidation of PPSB’s revenue.

The group’s energy and utilities segment recorded a slight decrease in pretax profit to RM145.2 million due to lower share of profit from Malakoff Corp Bhd, which in turn saw lower contribution from Segari Energy Ventures Sdn Bhd’s plant despite lower operation and maintenance costs, lower finance costs and depreciation, as well as gain on disposal of Malakoff’s associate, Lekir Bulk Terminal Sdn Bhd.

MMC’s engineering segment recorded a revenue of RM1.93 billion for FY18, an increase of 52.3% YoY due to work progress from the KVMRT-SSP Line.

Its investment holding, corporate and others segment achieved a revenue of RM95.7 million, an increase of 22.1 % YoY, due to higher passenger volume at Senai International Airport.

MMC added that its ports and logistics division is expected to record positive volume growth across all ports.

The acquisition of the balance 51% interest in PPSB in May 2018 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.

“Operational and cost synergies driven by MMC would further improve the performance of its ports and logistics division,” it noted.

The energy and utilities division, namely interest in Malakoff and Gas Malaysia Bhd, is expected to contribute positively to the group moving forward.

The earnings contribution from the engineering division is also expected to be sustained by ongoing projects including the Langat 2 water treatment plant and Langat centralised sewerage treatment project.