KUALA LUMPUR: MMC Corp Bhd’s net profit fell 79 per cent to RM22.29 million in the three months ended Sept 30, 2017, from RM105.89 million a year ago.
This was after a RM98 million one-off provision for impairment on its stormwater 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 from RM889 million a year ago, it said in a filing to Bursa Malaysia yesterday.
MMC group'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 from KVMRT-SSP Line and Langat Sewerage Treatment project, supported by higher contribution from Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) 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 on-going construction projects.
“Ports and logistics division is expected to register higher revenue across all the ports. The completion of 49 per cent acquisition in Penang Port Sdn Bhd (PPSB) and the on-going proposed acquisition of the remaining 51 per cent equity interest is expected to contribute positively to the group’s future earnings,” it said.
The group’s associated companies, Malakoff Corp Bhd and Gas Malaysia Bhd, will continue to contribute positively to the energy and utilities division, it added.