KUALA LUMPUR: MMC Corporation Bhd (MMC) recorded a higher net profit of RM57.88 mil for the first quarter ended March 31, 2020 from RM53.51 mil in 1Q19.
This was despite revenue decreasing to RM1.08 bil from RM1.14 bil previously, it said in a filing with Bursa Malaysia today.
“The group’s profit before zakat and taxation rose by 29.7% to RM115 mil compared to RM88 mil in 1Q19 due to higher contributions from Port of Tanjung Pelepas and Johor Port Bhd, as well as a higher share of results of associate Malakoff Corporation Bhd,” it said.
It added that higher interest income and lower operating expenses at the Klang Valley Mass Rapid Transit -Sungai Buloh-Serdang-Putrajaya (KVMRT-SSP) Line also helped to boost its performance.
Meanwhile, MMC attributed the decrease in revenue to slower work progress at the underground work packages for the KVMRT-SSP Line, lower volume handled at Northport Malaysia Bhd and lower contribution from Kontena Nasional Bhd.
On prospects, group managing director Datuk Seri Che Khalib Mohamad Noh said the group is cognisant of the challenging business environment this year in view of the global economic contraction arising from the Covid-19 pandemic.
He said measures taken by the governments all over the world to contain the pandemic have affected global economic activity; nevertheless, the group will continue to exercise prudence in its business dealings to navigate through this challenging year.
“The port and logistics division will focus on resource optimisation amid the uncertainty in the global container volume outlook.
“Continuous vigilant investments into the ports’ infrastructures, capacities and capabilities along with operational efficiency and group-wide cost synergies initiatives are expected to be the anchor to the overall port and logistics performance,” Che Khalib said.
Additionally, MMC’s energy and utilities division is expected to provide consistent earnings from the contributions by its associated companies, namely Malakoff and Gas Malaysia, and will continue to provide earnings visibility for the group from its substantial existing order book, anchored by the KVMRT-SSP Line project.
Moving forward, MMC said it remains committed to strengthening its market position by focusing on operational performance, efficiency and capability improvements while exploring new opportunities. – May 20, 2020, Bernama
