MMC Corporation Berhad records higher profit before zakat and taxation

Kuala Lumpur - MMC Corporation Berhad (“MMC” or “the Group”), a premier utilities and infrastructure group saw higher Profit Before Zakat and Taxation (PBZT) of RM104.6 million in the current quarter compared to RM92.4 million in the immediate preceding quarter. The growth came on the heels of increased throughput handled at Pelabuhan Tanjung Pelepas (PTP) and higher contribution from KVMRT Sungai Buloh-Serdang-Putrajaya (SSP Line), partially offset by lower container volume at Northport (Malaysia) Bhd (Northport) in the current quarter. The Group recorded higher revenue for the current quarter with RM944.4 million compared to RM925.2 million in the immediate preceding quarter following the completion of KVMRT Sungai Buloh-Kajang (SBK Line) in July. This was partially moderated by progress from KVMRT-SSP Line and Langat Sewerage Treatment project, as well as higher throughput handled at Johor Port Berhad (JPB) and Northport. Review of Key Operating Companies The Ports & Logistics division recorded revenue of RM1.42 billion, a 4.7% growth compared to RM1.35 billion in the corresponding period of the preceding year boosted by higher contribution in handling RAPID Material Offloading Facilities (RAPID MOLF) operations at JPB. The division recorded PBZT of RM241.9 million compared to RM247.1 million reported in the corresponding period of the preceding year. This is due to higher depreciation and operational cost attributed by increase in average diesel price per litre at all ports. The Energy & Utilities division recorded PBZT of RM99.8 million compared to RM105.4 million reported in the corresponding period of the preceding year due to lower share of profit from Malakoff. Meanwhile, the Engineering & Construction division recorded revenue of RM413.5 million compared to RM495.9 million reported in the corresponding period of the preceding year following the completion of KVMRT-SBK Line offset by progress from KVMRT-SSP Line and Langat Sewerage Treatment project. The division recorded a PBZT of RM84.7 million from RM109.7 million reported in the corresponding period of the preceding year. Moving Forward “The Group remains resilient on the back of stable performances within our operating companies and we are committed to delivering continuous growth driven by our port operations and nation building projects”, said Dato’ Sri Che Khalib Mohamad Noh, Group Managing Director of MMC Corporation Berhad. Ports & Logistics division is expected to register higher revenue across all the ports. The completion of 49% acquisition in Penang Port Sdn Bhd (Penang Port) and the proposed acquisition of the remaining 51% equity interest is expected to contribute positively to the Group’s future earnings as it allows full consolidation of Penang Port as a wholly-owned subsidiary. 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. The operational and cost synergies driven by MMC, will further enhance the financial performance of the division. The Energy & Utilities division on the other hand, is expected to continue to contribute positively from the Group’s associate companies, Malakoff and Gas Malaysia. Meanwhile, the Group’s Engineering & Construction’s substantial existing order-book provides earnings visibility for the division anchored by the KVMRT-SSP Line underground work and Project Delivery Partner (PDP) role for the elevated portion. Additionally, the earnings contribution from the division will be sustained by on-going nation building projects namely Langat 2 Water Treatment Plant, Langat Centralised Sewerage Treatment Project and our involvement in the PDP role for Pan Borneo Sabah Highway.