MMC Q1 pre-tax profit declines

MMC Corporation Bhd posted a lower pre-tax profit and zakat of RM181.078 million in the first quarter ended March 31, 2012,
from RM210.85 million, chalked up previously.

Revenue rose 7.9 per cent to RM2.324 billion versus RM2.153 billion, the company said in a filing to Bursa Malaysia.

MMC
said that lower profits from the energy and utilities segment were
mainly due to lower margins (margin per mmBtu of gas sold has decreased
by 13.7 per cent) on the new gas tariff imposed on Gas Malaysia Bhd in
June last year despite higher volume of gas sold for the period which
was 1.5 per cent higher than the previous period.

This was, however, offset by lower finance charges despite higher
borrowings compared with the previous period.

The increase in borrowings corresponded with Malakoff's issuance of the RM3.290 billion Sukuk Murabahah on March 16.

MMC
expects the group's financial results for the current financial year to
improve despite the uncertainties facing the global economy. -- Bernama