Logo of Phnom Penh Post newspaper Phnom Penh Post - Muhibbah’s Q1 profit 85% lower on weak airport business

Muhibbah’s Q1 profit 85% lower on weak airport business

Muhibbah’s Q1 profit 85% lower on weak airport business

Malaysia's Muhibbah Engineering Bhd reported a steep decline in quarterly net profit as the Covid-19 pandemic affected its airport business in Cambodia.

Net profit plunged 85 per cent to five million ringgit ($1.17 million) from 33 million a year ago.

Revenue improved to 333.5 million ringgit compared with 272.4 million ringgit previously, the company said in a filing with Bursa Malaysia on Monday.

It said: “In view of the above adverse factors and barring any other unforeseen circumstances, the group is foreseeing a challenging business environment for 2020.

“The group will be taking appropriate measures and actions to cater for its business undertaking moving forward.”

Muhibbah, via its joint venture firm Societe Concessionaire de l’Aeroport (SCA), has exposure to three airports in Cambodia.

Like other airport operators around the world, the company has been adversely affected by the drop in arrivals.

Meanwhile, the group said its construction and crane manufacturing division remained healthy.

As of June 17, the group’s total outstanding secured order book in hand for the construction and cranes division is 1.3 billion ringgit.

THE STAR (MALAYSIA)/ASIA NEWS NETWORK

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