KUALA LUMPUR (Feb 25): MMC Corp Bhd posted a 43% year-on-year net profit decline in its fourth quarter ended Dec 31, 2019 (4QFY19), dragged by slower work progress at the Sungai Buloh-Serdang-Putrajaya (SSP) line of the Klang Valley Mass Rapid Transit (KVMRT), following a revision of the contract for the job in November 2018.

It also saw lower work progress from the Langat Sewerage project.

The impact of these pulled net profit for 4QFY19 down to RM68.09 million from RM119.72 million previously, as revenue sank 30% to RM1.1 billion from RM1.56 billion. Consequently, earnings per share fell to to 2.2 sen from 3.9 sen, MMC's stock exchange filing today showed.

The weaker financial results were also due to the provision for impairment of receivables, though this was offset by a reversal of provision that was no longer required at the Electrified Double Track Project undertaken by its joint venture with Gamuda Bhd.

“A decision on the declaration of dividend for the financial year ended Dec 31, 2019 has yet to be made,” it said.

For the full FY19, the construction firm chalked up a higher net profit of RM255.17 million, up 16% from RM220.08 million in the year-ago period, despite revenue falling 5% to RM4.72 billion from RM4.98 billion. EPS grew to 8.4 sen from 7.2 sen.

It attributed the higher annual earnings to higher contributions from its port entities, higher share of results of associates, namely Malakoff Corp Bhd, higher passenger volume at the Senai Airport, and a gain on disposal of assets held for sale. The earlier mentioned provision reversal and lower administrative costs across the group also helped lift its bottom line.

Going forward, MMC said it expects to strengthen its capabilities while focusing on operating performance and efficiency, while exploring new opportunities. “The board is cognizant of the current local and global economic challenges and will continue to monitor the financial performance for the current financial year,” it added.

MMC shares closed half a sen higher at 90 sen today, giving it a market capitalisation of RM2.74 billion.

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