MMC Corp's net profit falls 26.33% in Q1

PETALING JAYA: MMC Corp Bhd's net profit for the first quarter ended March 31, 2018 declined 26.33% to RM 41.35 million from RM56.12 million a year ago on the back of lower contribution from its RAPID Material Offloading Facilities operations at Johor Port Bhd and lower container volume handled at Northport (Malaysia) Bhd.
This was further exacerbated by the lower share of profit recognised from its associated company Malakoff which in turn was due to lower contribution from the Segari Energy Venture's (SEV) plant and lower fuel margin recorded at coal plants.
Revenue for the period under review rose 38.3% to RM1.28 billion from RM925.23 million due to work progress from the Mass Rapid Transit Sungai Buloh-Serdang-Putrajaya Line and Langat sewerage treatment project as well as higher container volume handled at Pelabuhan Tanjung Pelepas.
MMC Corp said it remains positive on its prospects due to the improvement in performances of its operating companies together with contribution from ongoing construction projects.
Its ports and logistics division is expected to register higher revenue across all the ports, while the energy and utilities division will continue to contribute positively thanks to its associated companies Malakoff and Gas Malaysia.
"Substantial existing order book provides earnings visibility for the engineering division anchored by the MRT line underground work and project delivery partner (PDP) role for the elevated portion. Furthermore, earnings contribution from the engineering division will be sustained by ongoing projects namely Langat 2 water treatment plant, langat centralised sewerage treatment project and our involvement in the PDP role for Pan Borneo Sabah Highway," it said.
MMC Corp's shares closed unchanged at RM1.57 with 224,100 shares done.