KUALA LUMPUR (May 24): MMC Corp Bhd saw its net profit for the quarter ended March 31, 2021 (1QFY21) jump 115.45% to RM124.7 million, from RM57.88 million a year earlier, thanks to higher volume handled at Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) and Northport Malaysia Bhd.
The higher earnings were also due to a gain on sublease of land at PTP, as well as lower finance costs incurred.
Revenue increased 5.2% to RM1.14 billion from RM1.09 billion in 1QFY20, according to its bourse filing.
On a quarter-on-quarter basis, the group saw its net profit fall 30.38% from RM179.13 million, while revenue was down from RM1.29 billion.
It did not declare any dividend during the quarter.
In a separate statement, the group said it is positive on its growth prospects in FY21, in line with the expected global and domestic economic recovery.
“MMC’s key business divisions are to continue to play important roles in facilitating and enabling economic growth. Nevertheless, the group remains vigilant on the domestic market changes in response to the implementation of Movement Control Orders and the recent rising cases recorded,” it said.
It noted that the port and logistics division is expected to maintain strong momentum in line with economic recovery and growth. MMC said the division will continue to optimise the utilisation of its assets and resources coupled with the continuous introduction and adoption of stringent cost management.
Over the short to medium term, the division will prioritise its investments and capital allocation in order to elevate and further strengthen the ports’ capacities and infrastructures and operational efficiencies, MMC added.
Meanwhile, the group said its energy and utilities division is expected to contribute steady earnings from its two main associate companies, Gas Malaysia Bhd and Malakoff Corp Bhd.
As for its engineering division, MMC said the division remains active in securing new projects on the back of anticipated economic recovery and the Budget 2021 announcement, which aims to revive the economy by, among other initiatives, increasing the development expenditure allocation by 38% as compared to Budget 2020.
With better and timely preventative measures and broader coverage of vaccination, MMC opined that the anticipated economic recovery is attainable.
“The group is committed to strengthening our financial and market positions by focusing on operational excellence and cost optimisation, whilst exploring new business opportunities. Overall, the group expects to sustain its financial and operational performance for FY21,” it said.
MMC managing director Datuk Seri Che Khalib Mohamad Noh added: “The health and safety of our stakeholders remain our utmost priority. We will keep on strengthening our preventive measures and ensure minimal disruption to our business operation.”
Shares in MMC closed 1.82% or two sen higher at RM1.12, valuing the group at RM3.41 billion.
