“The proposed disposal will enable the MMC group to streamline its business operations and focus on the core businesses, namely ports and logistics, energy and utilities, and engineering and construction,” the company said
“It aligns with the MMC group’s asset monetisation programme for noncore assets as well as taking into consideration that the oil and gas industry worldwide is presently facing a downturn where the prolonged lower oil price has hit the industry hard.”
MMC said MMC Oil & Gas Engineering’s contributions to the group’s consolidated revenue and profit were currently minimal.
The group is expected to make a one-off gain of MYR16.5m from the proposed sale.
MMC said the cash proceeds of MYR50m from the disposal would be used to repay bank borrowings.
The proposed disposal is expected to be completed by the first half of this year.
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