MMC Corporation Berhad (MMC or the Group), a premier utilities and infrastructure group recorded a Profit Before Zakat and Taxation (PBZT) of RM88 million compared to RM64 million reported in the corresponding quarter of the preceding financial period due to higher contributions from port entities, offset by lower contribution from Klang Valley Mass Rapid Transit Sungai Buloh-Serdang (KVMRT-SSP Line).
THE Group recorded revenue of RM1.14 billion compared to RM1.28 billion due to lower contribution from KVMRT-SSP Line following revision of contract in November 2018 as well as lower progress from Langat Sewerage project.
These were moderated by consolidation of Penang Port Sdn Bhd’s (Penang Port) revenue and higher volume handled at Pelabuhan Tanjung Pelepas (PTP).
The Ports & Logistics division recorded higher revenue of RM780 million, an increase of 19.2% compared with RM655 million reported in the corresponding quarter of the preceding financial period, mainly due to effect from full consolidation of Penang Port’s revenue and higher volume handled at PTP.
The division recorded higher PBZT by RM37 million to RM104 million compared to RM67 million reported in the corresponding quarter of the preceding financial period due to higher contribution from Johor Port Berhad and Northport Malaysia Berhad as well as full consolidation of Penang Port’s result.
These were offset by higher finance cost and depreciation due to the adoption of MFRS 16 “Leases”.
The Energy & Utilities division recorded decrease in PBZT to RM32 million compared to RM38 million reported in the corresponding quarter of the preceding financial period due to higher operation and maintenance costs at Malakoff Corporation Berhad (Malakoff).
The Engineering division recorded revenue of RM338 million compared to RM604 million reported in the corresponding quarter of the preceding financial period mainly due to lower contribution from KVMRT-SSP Line following revision of contract in November 2018.
The segment recorded PBZT of RM49 million from RM74 million reported in the corresponding quarter of the preceding financial period due to lower contribution from KVMRT-SSP Line.
Ports & Logistics division is expected to record positive volume growth across all the ports. Continuous investments into the port’s infrastructure, capacity and capabilities along with execution of operational plans are expected to deliver positive results.
Operational and cost synergies driven by MMC would further improve the performance of its Ports & Logistics division.
The Energy & Utilities division is expected to contribute positively from the Group’s associated companies, namely Malakoff and Gas Malaysia Berhad.
Substantial existing order-book provides earnings visibility for the Engineering division anchored by the KVMRT-SSP Line. Furthermore, the earnings contribution from the Engineering division will be sustained by on-going projects including Langat 2 Water Treatment Plant and Langat Centralised Sewerage Treatment Project.
Overall, the Group expects to strengthen our capabilities with a focus on operating performance and efficiency, exploring new opportunities and continue to sustain our core business.
Dato’ Sri Che Khalib Mohamad Noh, Group Managing Director of MMC Corporation Berhad said, “We will further strengthen our foundation and continue to optimise our cost for greater operational efficiency.
“We remain focused on our deliverables and committed to returning more value to our stakeholders”.
