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MMC Corp posts strong FY16 growthThe Malaysian Reserve, Corporate Malaysia - MAR 01 2017


MMC Corp Bhd posted RM549.66 million in net profit for the financial year ended Dec 31,2016 (FY16), contributed by strong turnover in ports and logistics, as well as its engineering and construction business.

The utility and infrastructure conglomerate raked in RM4.63 billion in revenue for the year, with its ports and logistics division registering a 43.4% yearonyear (YoY) increase, while the engineering and construction business saw a 56.5% YoY increase.

The group is positive on its prospects backed by stable performance from operating companies, coupled w'ith contribution from ongoing construction projects.

"MMC Corp remains resilient and is committed to growth, despite the challenging backdrop in 2016," group MD Datuk Seri Che Khalib Mohamad Noh s?id in a statement yesterday.

"We are the largest port operating group in Malaysia and a trusted player in the engineering and construction industry, following the early completion of theKlang Valley Mass Rapid Trensit Sungai BulohKajang Line (Phase 1)," he said.

He also noted that the proposed RM200 million acquisition of Penang Port Sdn Bhd is expected to contribute positively to group earnings going forward, while establishing its presence in the northern region of Peninsular Malaysia.

MMC Corp said its engineering and construction division will be sustained by ongoing projects and its role as the project delivery partner for the Pan Borneo Sabah Highway.

Meanwhile, the group said its associated companies, Malakoff Corp Bhd and Gas Malaysia Bhd, will continue to contribute positively to its energy and utilities business.

On a YoY basis, the group's net profit was lower compared to RM1.67 billion posted in FY15, while revenue also declined by 8.5% YoY to RM4.63 billion.

It attributed the lower margins to Malakoff's deconsolidation since its listing in May 2015.

The group did not declare a dividend for FY16. MMC Corp's share price closed flat at RM2.51 yesterday, with 1.22 million shares changing hands.