Port operations boost MMC’s earnings

By NUR HANANI AZMAN 

MMC Corp Bhd is committed to strengthening its financial and market positions by focusing on operational excellence and cost optimisation, while exploring new business opportunities. 

Group MD Datuk Seri Che Khalib Mohamad Noh said MMC is positive on the growth prospects of its business divisions in the financial year 2021 (FY21) in line with the global economic recovery. 

He said MMC’s key business divisions will continue to play important roles in enabling and facilitating economic growth by providing essential needs and services across all economic sectors. 

“With better and timely preventive measures and broader coverage of vaccination, the group views the economic recovery is sustainable. 

“Overall, the group expects to sustain its financial and operational performance for FY21 and will stay resilient through the year,” he said in a statement yesterday. 

MMC’s net profit increased to RM173.76 million in the second quarter ended June 30, 2021 (2Q21), from RM77.36 million a year ago, due to higher volume handled across all its ports and lower finance costs incurred. 

Revenue amounted to RM1.15 billion, up 16% year-on-year from RM990.68 million reported in 2Q20, mainly due to higher volume handled across all ports. 

These were offset by lower contributions from the Langat Sewerage project and no sale of land at the Senai Airport City.

The utility and infrastructure conglomerate registered earnings per share of 5.70 sen for the quarter. 

For the cumulative six-month period, net profit rose to RM298.47 million from RM135.24 million in the first half of 2020, while revenue surged to RM2.29 billion from RM2.08 billion previously, mainly due to higher volume handled at Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) and Northport (M) Bhd. 

The strong performance there was offset by lower work progress on the Klang Valley’s Mass Rapid Transit Putrajaya Line and the Lan- gat Sewerage projects, lower passenger volume at the Senai Airport due to the Covid-19 pandemic, and no land sale deals at Senai Airport City complex. 

The ports and logistics division recorded revenue of RM1.82 billion compared to RM1.53 billion reported in the corresponding financial period ended June 30, 2020, due to higher volume handled at PTP and Northport. 

MMC remains vigilant on the market changes in response to the ongoing Movement Control Orders 3.0 (MCO 3.0) and the high number of Covid-19 cases recently recorded. 

The port and logistics division are expected to continue with the positive momentum in line with the expected economic recovery and growth this year. 

“The division will continue to optimise the utilisation of its assets and resources and exercise stringent cost management. 

“Over the short to medium terms, the division will focus on 

prioritising its investments and capital allocation in the ports’ infrastructures and operational efficiencies as part of strengthening its service capacities to meet the market demand,” he added. 

The energy and utilities division, namely Malakoff Corp Bhd and Gas Malaysia Bhd, remain key components of the group and are expected to contribute steady earnings. 

Despite the ongoing MCO 3.0 and its challenges, the engineering division is committed to complete its outstanding contracts within the allocated time and costs, and the division remains active in its efforts to secure new mega projects on the back of the economic recovery and Budget 2021 announcement that aims to revive the economic sectors.