KUALA LUMPUR: MMC Corp Bhd's (MMC) net profit jumped 124.6 per cent to RM173.76 million in the second quarter (Q2) ended June 30, 2021, from RM77.36 million recorded a year ago.
In an exchange filing today, the utilities and infrastructure company said this was attributed to higher volumes handled across ports and lower finance costs.
Q2 revenue increased 16.2 per cent to RM1.15 billion from RM990.68 million mainly due to higher volume handled across all ports but were offset by lower contribution from Langat Sewerage project and no sale of land at Senai Airport City (SAC).
For the first-half (1H) period ended June 30, 2021, MMC's net profit surged 120.7 per cent to RM298.47 million from RM135.24 million, while revenue increased 10.1 per cent RM2.29 billion from RM2.08 billion.
This is in line with higher volume handled at Port of Tanjung Pelepas (PTP) and Northport (Malaysia) Bhd (Northport), gain on the sublease of land at PTP and lower finance costs incurred.
However, 1H's earnings were offset by lower work progress from Klang Valley Mass Rapid Transit (KVMRT) Putrajaya Line and Langat Sewerage project as the projects were nearing completion, lower passenger volume at Senai Airport Terminal Sdn Bhd due to Covid-19 pandemic, and no sale of land at SAC.
MMC is positive on the growth prospects of its business divisions in the financial year ending December 31, 2021 (FY21), in line with the global economic recovery.
"MMC's key business divisions will continue to play important roles in enabling and facilitating economic growth by providing essential needs and services across all economic sectors."
The company would remain vigilant on the market changes in response to the ongoing Movement Control Orders 3.0 (MCO 3.0) and the recently recorded high number of Covid-19 cases.
MMC's port and logistics division is expected to continue the positive momentum in line with the expected economic recovery and growth this year.
"The division will continue to optimise the utilisation of its assets and resources and exercise stringent cost management.
"Over the short to medium terms, the division will focus on prioritising its investments and capital allocation in the ports' infrastructures and operational efficiencies as part of strengthening its service capacities to meet the market demand."
The company's energy and utilities division, namely Malakoff Corp Bhd and Gas Malaysia Bhd, would also remain a key MMC component.
These segments are expected to contribute steady earnings from its staple services across all economic sectors.
Meanwhile, its engineering division is committed to completing its outstanding contracts within the allocated time and costs, despite the ongoing MCO 3.0 and its challenges.
The division remains active in its efforts to secure new megaprojects on the back of the economic recovery and 2021Budget announcement that aims to revive the economic sectors.
Group managing director Datuk Seri Che Khalib Mohamad Noh said the company viewed the economic recovery as sustainable with better and timely preventive measures and broader coverage of vaccination.
"We are committed to strengthening our financial and market positions by focusing on operational excellence and cost optimisation whilst exploring new business opportunities.
"Overall, the company expects to sustain its financial and operational performance for FY2021 and will stay resilient through the year," he added.