MMC net profit soars to RM921.8m

MMC Corporation Bhd's (MMC) net profit jumped 177 per cent to RM921.78 million in the financial year ended December 31 2012, from RM332.57 million a year ago, boosted by gains from the disposal of a 10.9 per cent stake in Gas Malaysia Bhd.

However, the group's revenue was 11 per cent lower at RM8.3 billion, mainly due to the deconsolidation of Gas Malaysia following its listing on Bursa Malaysia.

"The decrease in the group's revenue is mainly due to the lower contribution from the energy and utilities sector arising from the listing of Gas Malaysia," it said.

For the fourth quarter ended December 31 2012, its net earnings also fell 58.2 per cent to RM79.47 million from RM191.76 million a year ago.

Revenue for the quarter also declined, down 28.9 per cent to RM1.71 billion from RM2.41 billion previously. Earnings per share were 2.61 sen compared with 6.30 sen the year before.

Meanwhile, profit before tax (PBT) for the year under review was RM1.8 billion, an increase of 81 per cent against RM998.6 million the previous year.

"Against a backdrop of economic uncertainties, MMC had demonstrated its ability to deliver a steady financial performance.

"Notwithstanding the listing of Gas Malaysia, we are committed to deliver growth on a long-term basis and strengthen our foothold in our key business areas," MMC's group managing director Datuk Hasni Harun said in a statement yesterday.

The ports and logistics segment showed an improvement in terms of increased throughput at MMC ports, namely Port of Tanjung Pelepas (PTP) and Johor Port Bhd (JPB).

PTP handled 7.7 million twenty foot equivalent units (TEUs) last year, two per cent higher than the previous year, while JPB's annual throughput increased to 32.9 million freight weight tonnes.

This business segment recorded a higher revenue of RM1.5 billion, a rise of seven per cent from RM1.4 billion in 2011. However, PBT declined by four per cent to RM285.6 million from RM297.5 million previously.

This was mainly due to higher unit operating costs at PTP and JPB compared with the previous year.

The energy and utilities segment achieved a lower PBT of RM825.6 million for the period under review, compared with RM939.9 million recorded in the previous corresponding period.

Revenue also decreased by 14 per cent to RM6.8 billion from RM7.9 billion in 2011. The lower turnover and earnings were attributed to the impact of deconsolidation of Gas Malaysia's earnings as well as lower margins on the gas tariff imposed on the company.

The performance of MMC's engineering and construction business, comprising inter alia the electrified double tracking project and Klang Valley MY Rapid Transit (KVMRT)-SBK Line has improved with a higher PBT of RM59.9 million compared with RM54.6 million in 2011.

The KVMRT-SBK Line project is expected to contribute positively to MMC's earnings over the next few years. This project is progressing smoothly with the first tunnel boring machine expected to begin tunnelling in May 2013.

In view of the improved profit performance, the board of directors of MMC will recommend a final single-tier dividend payment of 4.5 sen per share for the financial year ended December 31, 2012.