MMC Corp Bhd’s (MMC Group) net profit for the fourth quarter ended Dec 31, 2019 (4Q19) fell 43% to RM68.08 mil from RM119.71 mil a year earlier on the back of lower revenue of RM1.09 bil versus RM1.55 bil, a 29.6% decrease.
The company’s full FY19 net profit rose 16% to RM255.16 mil from RM220.08 mil a year ago while revenue fell 5.3% to RM4.71 bil from RM4.98 bil.
In a Bursa Malaysia filing on Feb 25, it said the drop in 4Q results was mainly due to lower work progress in the Klang Valley Mass Rapid Transit (KVMRT) Sungai Buloh-Serdang-Putrajaya (SSP) Line project following a revision of contract in November 2018, and from the Langat Sewerage project.
However, it said these were cushioned by the consolidation of Penang Port Sdn Bhd’s (PPSB) revenue, higher passenger volume at Senai Airport and higher volume handled at Pelabuhan Tanjung Pelepas (PTP) and Johor Port (JPB).
The company’s profit before zakat and taxation decreased to RM192.2 mil from RM209.8 mil in the corresponding quarter ended Dec 31, 2018, mainly due to lower work progress on the KVMRT-SSP Line and provision for impairment of receivables, offset by reversal of provision no longer required at the double-track project. – Feb 25, 2020
