MMC Q2 profit plunges 66.4pc to RM20.08m on lower contribution from port ops

KUALA LUMPUR: MMC Corporation Bhd’s net profit plunged 66.4 per cent in the second quarter ended June 30 to RM20.08 million, from RM59.81 million in the same quarter last year.

In a filing to Bursa Malaysia yesterday, MMC said result was due to lower contribution from Johor Port Bhd and Northport (Malaysia) Bhd.

Malakoff Corp Bhd’s contribution from Segari Energy Venture’s plant and lower fuel margin at coal plants also affected performance.

Revenue increased 27.1 per cent to RM1.2 billion, from RM944.43 million, mainly due to work progress from the Klang Valley Mass Rapid Transit-Sungai Buloh-Serdang-Putrajaya Line and the consolidation of Penang Port Sdn Bhd (PPSB).

For the six months, MMC’s net profit slipped 47 per cent to RM61.42 million, from RM115.94 million, while revenue increased 32.7 per cent to RM2.48 billion, from RM1.87 billion.

MMC said ports and logistics division was expected to record stable volume in all its ports.

“The acquisition of the balance 51 per cent interest in PPSB in May is expected to contribute positively to the division’s earnings.

“The acquisition allows the group to establish a foothold in the northern region and complement its strategic presence in the Straits of Malacca,” it said.

MMC said operational and cost synergies would improve the performance of the division.

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