MMC Corp 2Q net profit jumps over threefolds on strong performance, disposal gain

This article first appeared in The Edge Financial Daily, on August 28, 2019.
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KUALA LUMPUR: MMC Corp Bhd’s net profit rose more than threefolds to RM67.23 million for the second quarter ended June 30, 2019 (2QFY19), from RM20.08 million for the corresponding quarter last year.

Its revenue rose 2.5% to RM1.23 billion, from RM1.2 billion for the year-ago quarter, due to a higher volume handled at Pelabuhan Tanjung Pelepas (PTP) and with the consolidation of Penang Port Sdn Bhd’s revenue, the group said in a filing with Bursa Malaysia.

MMC attributed its profit rise to higher contribution from PTP, a lower operating cost at Johor Port Bhd and Northport Malaysia Bhd, as well as a gain on disposal of an asset held for sale, besides a lower administrative cost across the group.

The group said its profit would have been higher if not for the finance cost and depreciation due to adopting the Malaysian Financial Reporting Standard 16 Leases.

MMC’s strong 2Q earnings helped lift its first-half net profit to RM120.74 million, from RM61.42 million for the same period last year.

Its cumulative revenue, however, stood 4.3% lower at RM2.37 billion, versus RM2.48 billion for the year-ago period, due to lower contribution from the Mass Rapid Transit 2 project following a revised contract in November 2018, as well as a lower progress from the Langat Sewerage project.