Malaysia-based logistics and infrastructure group MMC Corporation announced higher revenue but lower earnings in the first quarter of 2017.
The port operator traced the profit decline mostly to a dip in box throughput at the Port of Tanjung Pelepas (PTP) and to increased costs.
In a statement, MMC said its ports and logistics division recorded a 3.2% increase in revenue to MYR712.8 million (US$167 million) in the first three months of this year compared to MYR690.4 million in the first quarter of 2016.
But port operations posted smaller earnings before interest and tax (EBIT) amounting to MYR124.1 million in the first quarter compared to MYR141.5 million a year ago.
“This is due to lower throughput volume at PTP and higher operational cost following the increase in average diesel price per liter,” explained MMC.
In group performance, the corporation posted an EBIT of MYR92.4 million in the first quarter of 2017 compared to MYR95.6 million in 2016, with revenue at MYR925.2 million against MYR936.3 million the preceding year.
Moving forward, MMC said it expects its ports and logistics business to register higher revenue across all the ports.
“The completion of 49% acquisition in Penang Port Sdn Bhd (Penang Port) and the proposed acquisition of the 51% is expected to contribute positively to the Group’s future earnings as it allows full consolidation of Penang Port as a wholly-owned subsidiary,” it said.
Mega ship makes call at PTP
Meanwhile the port operator said the Port of Tanjung Pelepas, Malaysia’s largest container terminal, became the first port in Southeast Asia to welcome Madrid Maersk, a 20,568-TEU container vessel.
The ultra-large ship is the first “second-generation” Triple-E class vessel owned by Maersk Line, the world’s largest container shipping company.
Madrid Maersk, which arrived at PTP last month, was on its maiden voyage for the Asia-Europe service loop of the 2M alliance network.
PTP said it was able to host the Madrid Maersk as it has the capacity and capability to accommodate mega vessels, being fitted out with the right facilities and equipment.
“The port is designed for the latest generation of container vessels [and] to handle huge volumes,” it added.
The port is a joint venture between MMC (70%) and APM Terminals (30%).
