MMC’s FY19 earnings jump 16% to RM255m

By FARA AISYAH / Pic By MUHD AMIN NAHARUL

MMC Corp Bhd’s net profit fell 43.1% year-on-year (YoY) to RM68.09 million for the fourth quarter ended Dec 31, 2019 (4Q19), from RM119.72 million a year ago, due to lower work progress from the Klang Valley Mass Rapid Transit Sungai Buloh-Serdang-Putrajaya (KVMRT-SSP) line and provision for impairment of receivables.

The decline was, however, offset by the reversal of provision no longer required at the double-track project, the utilities and infrastructure group said in a statement to Bursa Malaysia yesterday.

Earnings per share for the three months were lower at 2.2 sen against 3.9 sen in 4Q18.

Quarterly revenue decreased 29.3% YoY to RM1.1 billion from RM1.56 billion in 4Q18 due to lower work progress from the KVMRT-SSP line following the contract revision in November 2018, and the Langat Sewerage project.

For the financial year ended Dec 31, 2019 (FY19), MMC’s earnings jumped 15.9% YoY to RM255.17 million from RM220.08 million in the previous year.

This was underpinned by higher contributions from port entities, higher share of results from Malakoff Corp Bhd, higher passenger volume at Senai Airport, reversal of provision no longer required at the double-track project, and gain on disposal of assets held for sale and lower administrative cost.

Full-year revenue dipped 5.2% YoY to RM4.72 billion from RM4.98 billion in FY18 due to lower work progress from the KVMRT-SSP line and the Langat Sewerage project.

These were cushioned by the consolidation of Penang Port Sdn Bhd (PPSB) revenue, higher passenger volume at Senai Airport and higher volume handled at Port of Tanjung Pelepas (PTP) and Johor Port.

“MMC will continue to strengthen the group’s capabilities with a focus on operating performance and efficiency, while exploring new opportunities,” MMC group MD Datuk Seri Che Khalib Mohamad Noh (picture) said in a statement yesterday.

The firm expects its continuous investments into the ports’ infrastructure, capacities and capabilities along with the execution of operational plans to deliver positive results.

Its operational and cost synergies are also anticipated to further improve the performance of the group’s ports and logistics division.

The energy and utilities division is expected to contribute positively from the group’s associated companies, namely Malakoff and Gas Malaysia Bhd.

The substantial existing orderbook provides earnings visibility for the engineering division anchored by the KVMRT-SSP line.

In addition, earnings contribution from the engineering division will be sustained by ongoing projects.

During the 12-month period, the group’s ports and logistics division recorded a higher profit before zakat and taxation (PBZT) of RM459.6 million compared to RM413.3 million in FY18 due to higher volume handled at PTP and Johor Port, oil spill compensation at PTP, and gain on disposal of an asset held.

The energy and utilities segment recorded a PBZT of RM160 million against RM146.4 million in FY18 due to higher contribution from Malakoff, which was attributed to a one-off disposal gain, fair value remeasurement gain on existing investment in its associate, lower barging and demurrage costs, and lower net finance costs.

Meanwhile, the engineering segment’s PBZT increased to RM297.7 million from RM292.1 million the year before due to reversal of provision no longer required at the double-track project.