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Thursday May 22, 2008

MMC expanding core operations

By DANNY YAP


KUALA LUMPUR: MMC Corp Bhd, which recorded over RM1bil in pre-tax profit for the first time in the financial year ended Dec 31, 2007 (FY07), will continue to focus on its core businesses of transportation logistics, utilities and engineering construction to boost earnings.

Chairman Datuk Wira Syed Abdul Jabbar Syed Hassan said MMC would expand its core businesses locally and aboard, while hiving off its non-core businesses when appropriate.

“We’ve completed the acquisition of Malakoff Corp Bhd, giving us control over the country’s leading independent power producer accounting for a quarter of Peninsular Malaysia’s total installed capacity,” he told reporters after the company AGM yesterday.

Syed Abdul Jabbar said MMC’s commendable performance in FY07 was attributed to overall better performance from all its core businesses, especially power and utilities.

“Our power business via Malakoff over an eight-month period last year contributed much to bolster the group’s results,” he said, adding that greater earnings contribution from Malakoff was expected in FY08.

Datuk Wira Syed Abdul Jabbar (left) and Hasni Harun

He said the company's performance for FY08 would be driven by the consolidation of the full-year results of Malakoff, including contributions from its Tanjung Bin power plant, and power assets in Oman and Jordan.

For FY07, MMC posted a 75% increase in pre-tax profit to RM1.02bil, compared with RM581mil in FY06. Net profit grew to RM552mil from RM390mil in FY06, while earnings per share grew from 12.8 sen to 18.1 sen.

Director and chief executive officer Hasni Harun said the company's near-term earnings would be driven mainly by its local operations.

“Contributions from our operations in Malakoff, Port of Tanjung Pelepas and the RM12.5bil double-tracking project from Ipoh to Pasir Gudang would continue to be strong but we expect our overseas operations to contribute more over the longer term,” he added.

Currently, about 98% of MMC’s earnings are derived from its local operations.

Overseas operations, especially in Saudi Arabia, should be able to contribute more by 2012, Hasni said.

MMC, together with the Binladen Group, is the joint master developer of the US$30bil Jazan Economic City in Saudi Arabia stretching 25 years.

MMC plans to list a joint-venture company on the Saudi exchange.


MMCCORP : [Stock Watch] [News]

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