KUALA LUMPUR (Aug 24): MMC Corp Bhd’s second quarter net profit grew 15.08% to RM77.36 million, from RM67.23 million a year earlier, due to higher share from the results of associate Malakoff Corporation Bhd, gain on sale of land at Senai Airport City (SAC) and lower operating expenses.

This was despite a 19.47% fall in revenue to RM990.68 million for the quarter ended June 30, 2020, from RM1.23 billion previously, due to slower progress of the MRT2 project (Putrajaya Line) and lower passenger and cargo volumes at Senai Airport, along with lower volume handled across all ports as a result of the movement control order.

In a filing with Bursa Malaysia, MMC said the second quarter net profit was 33.65% higher when compared with the RM57.88 million reported in the immediate preceding quarter.

This was despite revenue falling 8.85% from RM1.09 billion in the preceding quarter

For the cumulative six months ended June 30, MMC’s net profit rose 12.01% to RM135.24 million from RM120.74 million last year, while revenue was down 12.47% to RM2.08 billion, from RM2.37 billion.

On prospects, MMC said the group is cognisant of the challenging business environment in the current year, in view of the global economic contraction arising from the Covid-19 pandemic.

“With the recent drop in Covid-19 cases locally, most business activities have seen to resume operations whilst adhering to stricter standard operating procedures,” said MMC, adding that the group views this development as a positive progress towards economic recovery outlook, should the situation remain.

Noting that the ports and logistics division continues to focus on resource optimisation amid the improving global container volume outlook, MMC said the continuous vigilant investments into the ports’ infrastructures, operational efficiency and cost synergies’ initiatives across the group, are expected to be the key drivers to the overall ports and logistics segment’s performance.

MMC added that the energy and utilities division is expected to contribute consistent earnings from Malakoff and another associate company, Gas Malaysia Bhd.

The engineering division, meanwhile, is expected to provide earnings visibility for the group from its substantial existing orderbook, anchored by MRT2 project.

“Moving forward and in anticipation of the continued challenging environment, MMC remains focused to deliver results and contribute towards industry growth and nation building,” said its group managing director Datuk Seri Che Khalib Mohamad Noh.

“As most of our core businesses are deemed as essential services, we will strive for greater heights, albeit via safe, reliable and efficient operations. All in all, our sustainable growth will be supported by a resilient business model and strong workforce,” he added in a statement.

Shares of MMC closed 3.5 sen or 5.19% higher at 71 sen today, valuing the group at RM2.16 billion. Over the past year, the stock has fallen by 36%.

Editing by S. Kanagaraju

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