by FARA AISYAH / pic by TMR FILE
MMC Corp Bhd will explore new business opportunities while focusing on operational excellence and cost optimisation amid the Covid-19 pandemic, said group MD Datuk Seri Che Khalib Mohamad Noh.
“We will continue leveraging on our collective businesses’ strengths and long-standing industry experience and expertise to contribute towards industry growth and nation-building.
“Notwithstanding the exceptional challenges this year, the group expects the financial performance for the current year to be satisfactory,” he said in a statement yesterday.
In the third quarter ended Sept 30, 2020 (3Q20), MMC’s earnings dipped 8.15% year-on-year (YoY) to RM60.93 million or two sen per share from RM66.34 million last year due to lower contribution from the Klang Valley Mass Rapid Transit Sungai Buloh-Serdang-Putrajaya Line (KVMRT-SSP Line) and Northport (M) Bhd, as well as lower passenger and cargo volumes at Senai Airport Terminal Services Sdn Bhd in Johor.
The group’s quarterly revenue declined 10.4% YoY to RM1.12 billion from RM1.25 billion in 3Q19, mainly due to lower progress at the KVMRT-SSP Line and lower passenger and cargo volumes at Senai Airport — affected by the unprecedented Movement Control Order.
The board declared a dividend of 1.5 sen per share, to be paid on Dec 23, 2020.
For the cumulative nine-month period, MMC’s net profit increased by 4.86% YoY to RM196.17 million, while revenue decreased 11.6% YoY to RM3.2 billion.
MMC said it is cognisant of the challenging business environment in the financial year 2020 in view of the Covid-19 pandemic and its impact on the global and domestic economic conditions.
However, timely and effective standard operating procedures set in place by the government to contain the spread of Covid-19 cases, economic and business activities are able to resume progressively.
Notwithstanding the positive developments, the group said it will continuously monitor and ensure timely response towards Covid-19 situation to facilitate recovery and growth of our businesses.
It added that its port and logistics division has been showing improvement in performance, underpinned by economic recovery momentum since the resumption of the global and domestic trade activities.
Continuous investments into the ports’ infrastructures, operational efficiency and cost-synergy initiatives across the group are expected to be the key drivers to the overall port and logistics performances in the short and medium terms.
MMC said the energy and utilities division remains resilient to the impact of Covid-19 and is expected to contribute steady earnings from its two associated companies, namely Malakoff Corp Bhd and Gas Malaysia Bhd.
Meanwhile, the engineering division is expected to provide earnings visibility for the group from its substantial existing orderbook, anchored by the KVMRT-SSP Line project.
The division is committed and remains active in its effort to secure new projects on the back of the anticipated economic activity from Covid-19 recovery, while focusing on the execution and timely completion of its existing projects.