KUALA LUMPUR (May 28): MMC Corp Bhd announced a 29.4% net profit jump for its first quarter ended March 31, 2019 (1QFY19) to RM53.52 million, from RM41.35 million in the same quarter a year ago, thanks to higher contributions from its port entities.
The improvement was partially offset by lower contribution from the Klang Valley Mass Rapit Transit (KVMRT) Sungai Buloh-Serdang-Putrajaya (SSP) Line underground works, following a contract revision in November 2018.
Quarterly revenue shrank 10.7% to RM1.14 billion from RM1.28 billion previously, dragged by the lower KVMRT-SSP Line contribution, as well as lower progress from its Langat sewerage project.
The fall was, however, moderated by the consolidation of Penang Port Sdn Bhd's revenue, as well as higher volume handled at Pelabuhan Tanjung Pelepas, said MMC Corp in its exchange filing today.
During the quarter under review, its ports and logistics segment reported a 55% increase in profit due to higher contribution from Johor Port Bhd and Northport Malaysia Bhd, as well as the full consolidation of Penang Port's result.
Its engineering segment, however, saw a 34% decrease in profit due to lower contribution from the KVMRT-SSP Line underground works as mentioned above.
Profit for its energy and utilities segment, meanwhile, fell 17% on higher operation and maintenance costs at Malakoff Corp Bhd.
On prospects, MMC group managing director Datuk Seri Che Khalib Mohamad Noh said the group will further strengthen its foundation and optimise cost for greater operational efficiency.
The group anticipates its ports and logistics division will record positive volume growth across all ports, while its energy and utilities division will "contribute positively from the group's associated companies", namely Malakoff and Gas Malaysia Bhd.
"Substantial existing order-book provides earnings visibility for the engineering division, anchored by the KVMRT-SSP Line underground and elevated work.
"Furthermore, the earnings contribution from the engineering division will be sustained by ongoing projects, including the Langat 2 Water Treatment Plant and the Langat Centralized Sewerage Treatment Project," the group said.
MMC Corp shares closed three sen or 3.03% higher today at RM1.02, for a market capitalisation of RM3.11 billion.
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