Highlight MMC 4Q net profit falls 49% y-o-y; FY2013 profit plunges 75%

by **Cals** Fri 28 Feb 2014, 01:33

Highlight MMC 4Q net profit falls 49% y-o-y; FY2013 profit plunges 75%

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Thursday, 27 February 2014 14:13

KUALA LUMPUR (Feb 27): MMC Corporation Bhd posted much lower profits for its fourth quarter and full year due mainly to the deconsolidation of Gas Malaysia post-listing, and lower contribution from Malakoff.

It reported a net profit of RM40.96 million for its fourth financial quarter to December 2013, which was 49% lower than RM80.04 million posted in the fourth quarter of 2012.

Similarly, revenue for the quarter also fell to RM1.85 billion from RM2.06 billion.

For the full year of 2013, net profit plunged 75% to RM228.66 million from RM922.35 million a year ago. Revenue also fell 19% to RM7.45 billion from RM9.20 billion.

In its filing with Bursa Malaysia, MMC said in its results review:
“The decrease in the group’s full year revenue is mainly due to the deconsolidation of Gas Malaysia Berhad (GMB) results post listing in June 2012, coupled with lower contribution from Malakoff.

“Profit before zakat and taxation for the twelve-month financial period ended 31 December 2013 was RM260.7 million compared with RM1,808.3 million in the corresponding period in 2012, representing a decrease of 85.6%.

“The decrease was mainly due to the absence of gain on GMB listing amounting to RM1,011.5 million coupled with lower contribution from Malakoff.”

On outlook, MMC said it expects its financial results for the current financial year to improve against the previous year.

“Malakoff Corporation Bhd is expected to perform better as the ongoing rectification works at the Tanjung Bin Plant to solve the boiler issues is progressing smoothly and it is expected to achieve full capacity by the second half of 2014.

“The Ports & Logistics segment will see higher volume in Pelabuhan Tanjung Pelepas (PTP) from the port expansion due to be completed in May 2014.

"The additional capacity to be managed by PTP will translate to stronger revenue and earnings for the financial year.

“Earnings from the Engineering & Construction segment will continue to contribute positively via the KVMRT project. The project is gaining momentum as it enters into its third year of construction,” it said.