MMC Corp's 1Q net profit rises four-fold on Malakoff, port ops contributions

by **Cals** Fri 29 May 2015, 00:16

MMC Corp's 1Q net profit rises four-fold on Malakoff, port ops contributions

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By Sulhi Azman / theedgemarkets.com | May 28, 2015 : 8:40 PM MYT

KUALA LUMPUR (May 28): [size=14]MMC Corp Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) saw its net profit for the first quarter ended March 31, 2015 (1QFY15) soared four-fold or 306% to RM95.75 million or 3.14 sen per share, from RM23.57 million or 0.77 sen per share a year ago, on better contributions from its newly-relisted unit Malakoff Corp Bhd and its port operations.

Its revenue for the quarter under review was at RM1.98 billion, up 6.64% from RM1.86 billion a year ago, its filing with Bursa Malaysia today showed.

MMC Corp said the higher revenue was due to higher contribution from Malakoff (in which it now owns 36.49%), in line with the full recovery of the latter’s Tanjung Bin Power plant in Johor, as well as MMC Corp’s higher throughput volume handled at Pelabuhan Tanjung Pelepas Sdn Bhd.

“The significant increase was largely attributed to the improved results from Tanjung Bin Power plant, following its successful recovery program that saw significant improvement in the average capacity factor of 88% (2014: 56%) and absence of provision for negative billings, as well as contributions from Malakoff’s Macarthur wind farm in Australia and power plant Port Dickson,” the group said.

Its engineering and construction division, however, recorded a 4.2% decrease in revenue to RM199.1 million in 1QFY15, from RM207.9 million in 1QFY14, following the completion of the electrified double track project in November last year.

MMC Corp, which is controlled by tycoon Tan Sri Syed Mokhtar Albukhary, said it remains positive on its prospects, “driven by stable performance of its operating companies, together with contribution from on-going construction projects.”

Its shares closed down 9 sen at RM2.60 today, giving it a market capitalisation of RM7.92 billion.

Malakoff’s counter, which has been trading below its initial public offering price of RM1.80, closed 1 sen higher at RM1.76 today, for a market capitalisation of RM8.8 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations)
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