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MMC 3Q net profit up 70% driven by KVMRT-SSP Line

KUALA LUMPUR (Nov 26): MMC Corp Bhd saw net profit jump 70.3% to RM66.34 million for the third quarter ended Sept 30, 2019 (3QFY19) from RM38.94 million a year ago, on higher work progress from Klang Valley Mass Rapid Transit Sungai Buloh-Serdang-Putrajaya (KVMRT-SSP) Line.

The utilities and infrastructure group also saw higher contribution from Malakoff Corp Bhd due to improved contribution from its coal plants, as well as gain on disposal of an asset held for sale, lower administrative cost and oil spill compensation at Port of Tanjung Pelepas in Johor.

This brought a higher earnings per share of 2.2 sen for 3QFY19 compared with 1.3 sen for 3QFY18.

Revenue for the quarter also rose 32% to RM1.25 billion from RM944.08 million a year ago.

In a statement today, MMC said the better quarterly performance was achieved even without the one-off recognition of negative goodwill which was recorded in 2018 upon finalisation of Penang Port Sdn Bhd’s (PPSB) purchase price allocation exercise, as well as higher finance cost and depreciation due to the adoption of the Malaysian Financial Reporting Standards 16.

The improved quarterly performance lifted the group's net profit for the cumulative nine months (9MFY19) up by 86.4% to RM187.08 million from RM100.37 million a year ago, while revenue grew 5.7% to RM3.62 billion from RM3.42 billion.

On prospects, MMC said continuous investments into its ports’ infrastructure, capacities and capabilities along with execution of operational plans are expected to deliver positive results.

The energy and utilities division is expected to contribute positively from the group’s associated companies, namely Malakoff and Gas Malaysia Bhd, it added.

"Overall, the group expects to strengthen our capabilities with a focus on operating performance and efficiency, while exploring new opportunities. Based on the foregoing, the group expects the financial performance for 2019 to be satisfactory," said MMC.

MMC shares closed down 1.5 sen or 1.52% at 97.5 sen today, with 7.66 million shares done, bringing a market capitalisation of RM2.97 billion.

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