Highlight MMC's revenue falls on Malakoff deconsolidation

by **Cals** Wed 24 Feb 2016, 04:13

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[size=28]MMC's revenue falls on Malakoff deconsolidation

By Gho Chee Yuan / theedgemarkets.com | February 23, 2016 : 8:40 PM MYT

KUALA LUMPUR (Feb 23): MMC Corp Bhd's net profit fell 25% to RM149.95 million in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM199.15 million a year earlier, as revenue fell after the deconsolidation of Malakoff Corp Bhd's income.

MMC had last year cut its stake in power producer Malakoff to 37.6% from 51%, upon completion of Malakoff's initial public offering (IPO).

Today, MMC said 4QFY15 revenue dropped to RM955.65 million, from RM2.3 billion a year earlier.

Full-year net profit rose to RM1.64 billion, from RM492.93 million a year earlier. Revenue was however lower at RM5.05 billion, versus RM8.77 billion.

"The (revenue) decrease was mainly due to deconsolidation of Malakoff’s results upon completion of its IPO listing on 15 May 2015, absence of substantial sale of land in respect of the overall development of Senai Airport City, lower work progress recorded from Klang Valley Mass Rapid Transit (KVMRT) Sungai Buloh-Kajang (SBK) and completion of Electrified Double Track project in November 2014," MMC said.

MMC said its profit before tax rise was "mainly attributed to exceptional gains arising from Malakoff’s May 2015 IPO listing of RM1,344.1 million and fair value re-measurement in NCB’s investment of RM143.5 million, following completion of additional acquisition."

Moving forward, MMC said it remained positive on its prospects, driven by improved performance of its operating companies, together with contribution from on-going construction projects.

Meanwhile, contribution from MMC's energy and utility division will be reduced as a result of full year impact of the deconsolidation of Malakoff, according to MMC.

"However, the energy and utility division is expected to perform better, supported by improved performance at Malakoff with the expected completion of an additional 1,000MW in Tanjung Bin Energy power plant in March 2016, as well as higher gas volume sales at Gas Malaysia," MMC said.

At 5pm, MMC shares closed one sen or 0.6% lower at RM1.70, for a market capitalisation of RM5.18 billion. The stock saw 353,300 shares traded.

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