MMC profit falls after one-off provision

KUALA LUMPUR: MMC Corp Bhd’s net profit fell 79 per cent to RM22.29 million in the three months ended September 30 this year, compared with RM105.89 million a year ago.

This was after a RM98 million one-off provision for impairment on its storm-water management and road tunnel project, as a result of lower projected traffic volume.

The group’s revenue rose 19 per cent to RM1.06 billion in the third quarter compared with RM889 million in the same period a year ago, the company said in a filing with Bursa Malaysia yesterday.

MMC Corp’s net profit for its nine-month period halved to RM140.35 million from RM282.25 million a year ago. This was despite revenue growing 5.4 per cent to RM2.93 billion.

The higher revenue was due to higher work progress at the Mass Rapid Transit Sungai Buloh-Serdang-Putrajaya Line and Langat sewerage treatment project, supported by higher contribution from Pelabuhan Tanjung Pelepas Sdn Bhd and Johor Port Bhd.

In a separate statement, MMC said its ports and logistics division saw a 6.8 per cent increase in nine-month revenue to RM2.14 billion from RM2.01 billion previously.

The group is optimistic of its prospects and will continue to build on its momentum driven by stable performances of its operating companies as well as contribution from ongoing construction projects.

“Ports and logistics division is expected to register higher revenue across all the ports. The completion of a 49 per cent (stake) acquisition in Penang Port Sdn Bhd (PPSB) and the proposed acquisition of the remaining 51 per cent equity interest is expected to contribute positively to the group’s future earnings,” it said.

MMC’s associated companies, Malakoff Corp Bhd and Gas Malaysia Bhd, will continue to contribute positively to the energy and utilities division, it added.