MMC’s Q4 earnings hit by losses at Zelan, lack of land sale

PETALING JAYA: MMC Corp Bhd’s net profit for the fourth quarter ended Dec 31, 2017 fell 68% to RM85.05 million from RM267.41 million a year ago, in the absence of land sale at Senai Airport City, completion of Sungai Buloh-Kajang MRT Line and higher share of losses from Zelan Bhd.

Subsidiary Senai Airport City Sdn Bhd holds a total of 2,780 acres land and the market developer of the industrial development known as Senai Airport City.

The group’s revenue fell 33.33% in the quarter under review to RM1.23 billion from RM1.85 billion.

The group remains positive of its prospects driven by improving performances of its operating companies together with contribution from ongoing construction projects.

“Ports & Logistics division is expected to register higher revenue across all the ports. The completion of 49% acquisition in Penang Port Sdn Bhd (PPSB) 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 PPSB 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,” its board of directors said.

The group’s full year net profit stood at RM225.40 million, 58.99% lower than the RM549.66 million reported in the previous financial year.

Revenue declined to RM4.16 billion from RM4.62 billion.

The stock fell 1.54% to close at RM1.92 with 130,900 shares done.