KUALA LUMPUR (June 22): Muhibbah Engineering (M) Bhd’s net profit shrank to RM5.1 million for the first quarter ended March 31, 2020 (1QFY20), down 84.55% from RM33.01 million a year earlier, on lower contribution from the group's airport concession division, which has been adversely impacted by the Covid-19 pandemic.

Earnings per share (EPS) declined to 1.06 sen for 1QFY20, compared with 1QFY19’s EPS of 6.85 sen. This is despite a 22.43% rise in revenue to RM333.49 million from RM272.39 million, the group’s unaudited quarterly results filing today showed.

On prospects, the group noted that it had an outstanding construction and crane order book of RM1.3 billion as at June 17.

But due to the Covid-19 driven headwinds in the global economy and volatile crude oil prices, “the overall situation is expected to remain unpredictable for now as nations worldwide are putting in place respective responses to contain the Covid-19 pandemic and introducing both monetary and fiscal stimulus packages to support the economy,” it noted.

As such, the group, which foresees a challenging business environment for the remainder of the year, said it will be taking appropriate measures and actions to cater for its business undertakings, moving forward.