PETALING JAYA: MMC Corp Bhd’s net profit for the fourth quarter ended Dec 31, 2018 (Q4 FY18) surged 59.8% to RM119.72 million from RM74.91 million a year ago due to the full consolidation of Penang Port Sdn Bhd’s result.
In a filing with Bursa Malaysia, the group said higher contribution from the Klang Valley Mass Rapid Transit Sungai Buloh-Serdang-Putrajaya (KVMRT-SSP Line) and the absence of share of losses from Zelan Bhd also contributed to the improved earnings.
The group also saw higher share of profit from Malakoff Corp Bhd as a result of improved contribution at coal plants, lower depreciation, lower maintenance and finance costs, and higher contribution from associates investment.
Revenue for the quarter rose 28.4% to RM1.59 billion from RM1.23 billion a year ago.
For the financial year ended Dec 31, 2018, MMC’s net profit increased 4.91% to RM220.08 million from RM209.79 million a year ago while revenue was up 20.4% to RM5.01 billion from RM4.16 billion.
Moving forward, the group said the ports and logistics division is expected to record positive volume growth across all the ports while the completion of acquisition of the balance 51% interest in Penang Port in May 2018 will reflect its full year contribution to the division’s financial performance.
“The acquisition allows the group to establish a strong foothold in the northern region of Peninsular Malaysia and complement the group’s strategic presence throughout the Straits of Malacca. Operational and cost synergies driven by MMC, would further improve the performance of its ports and logistics division.”
Meanwhile, the energy and utilities division is expected to contribute positively from the group’s associated companies, namely Malakoff and Gas Malaysia Bhd.
For the engineering division, the substantial existing order book will provide earnings visibility, anchored by the KVMRT-SSP Line underground and elevated work.
The earnings contribution from the engineering division will also be sustained by ongoing projects including Langat 2 Water Treatment Plant and Langat Centralized Sewerage Treatment Project.
Source: The Sun Daily