YTL Corp Records 9-Month Revenue of RM10.8 Billion (US$2.5 Billion)
Profit for the Period Stands at RM1.0 Billion (US$234 Million)
Kuala Lumpur, Thursday 25 May 2017
YTL Corporation Berhad announced today revenue of RM10,830.6 million (US$2,507.1 mn) for the 9 months ended 31 March 2017, decreasing from RM12,004.5 million (US$2,778.8 mn) for the preceding corresponding 9 months ended 31 March 2016.
Profit for the period stood at RM1,011.3 million (US$234.1 mn) for the first 3 quarters of the financial year ending 30 June 2017, compared RM1,170.7 million (US$271.0 mn) for the same period last year.
YTL Group Managing Director Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, CBE, FICE, said, “The Group’s performance remained satisfactory during the first 3 quarters of the 2017 financial year in view of ongoing pressures that have persisted in our main operating industries. Our utilities division saw a decline in revenue and profit mainly due to the absence of revenue from the contracted power generation segment following the completion of our power purchase agreement in September 2015.
The strengthening of the Malaysian Ringgit against the British Pound impacted the results of the water and sewerage segment, whilst the merchant multi-utilities division registered an increase in profit due to higher fuel prices, coupled with lower operating and interest expenses.
“In new developments in the utilities business, we increased in our stake in Attarat Power Company (APCO) to 45%, from 30% previously, upon the project achieving financial close in March 2017. APCO is developing a 554 megawatt oil shale fired power generation project in the Hashemite Kingdom of Jordan, targeted to commence operation in 2020. The project has a 30-year power purchase agreement for the plant’s entire electrical capacity with NEPCO, Jordan’s state-owned power utility, with an option for NEPCO to extend the operating period of the power purchase agreement to 40 years.
“In addition, in our contracted power generation division, the extension for the supply of 585 megawatts of capacity from our existing power station in Paka, Terengganu, for a revised term of 3 years 10 months has now been finalised and is scheduled to commence on 1 September 2017.
“In the Group’s other operations, revenue and profit in the cement division decreased primarily as a result of lower demand for cement in the construction industry, competitive pricing and higher production costs, whilst the improved financial performance of the construction division was due to higher revenue recognition of construction contracts and better contract margins. The property investment and development segment saw higher revenue and profit arising from better site progress on The Fennel project and higher unrealised foreign exchange gains.”
YTL POWER INTERNATIONAL BERHAD
YTL Power Registers 9-Month Revenue of RM7.2 Billion (US$1.7 Billion) & Profit of RM531 Million (US$123 Million)
YTL Power recorded revenue of RM7,191.8 million (US$1,664.8 mn) for the 9 months ended 31 March 2017 compared to RM8,078.8 million (US$1,870.1 mn) for previous corresponding the 9 months ended 31 March 2016, whilst profit for the period decreased to RM531.1 million (US$122.9 mn) this year, compared to RM685.6 million (US$158.7 mn) for the same period last year.
The decrease was due mainly to the absence of the one-off gain from an arbitration award recorded in the same period last year on the recovery of impairment of receivables before tax of RM152.6 million and interest income of RM38.0 million in the contracted power generation segment.
Adjusting for the one-off gain, profit before taxation would have been RM680.7 million for the preceding 9 months ended 31 March 2016, compared to profit before tax of RM644.3 million for the current year to date, a decrease of 5.3%. This was mainly due to the strengthening of the Malaysian Ringgit against the British Pound affecting the water and sewerage division and lower interest income in the investment holding activities segment. Meanwhile, the launch of nationwide 4G LTE services in the mobile broadband division has resulted in an increase in revenue and lower losses recorded in the segment.
YTL Power completed the increase in its equity interest in Attarat Power Company, a 554 megawatt oil shale fired power generation project in Jordan, to 45% (from 30% previously) upon the project achieving financial close on 16 March 2017. The project has a 30-year power purchase agreement with the National Electric Power Company (NEPCO), the state-owned utility, for the plant’s entire electrical capacity, with an option for NEPCO to extend the power purchase agreement to 40 years.
In subsequent developments, on 20 April 2017, the Energy Commission (EC) issued a revised Letter of Award to YTL Power Generation Sdn Bhd (YTLPG), a wholly-owned subsidiary of YTL Power, accepting YTLPG's bid for the supply of 585 megawatts of capacity from its existing facility in Paka for a term of 3 years 10 months (an additional 12 months from the original award of 2 years 10 months), commencing from the commercial operation date of the project, scheduled to occur on 1 September 2017. Pursuant to the Letter of Award, YTLPG and Tenaga Nasional Berhad entered into a Power Purchase Agreement (PPA) and a Land Lease Agreement both dated 9 May 2017. The Land Lease Agreement is for a term of 5 years 10 months from the commercial operation date. On 22 May 2017, YTLPG and Petronas entered into a Gas Supply Agreement (GSA) for the supply of natural gas to the power station. The PPA and GSA are both subject to certain conditions precedent, including obtaining the necessary corporate authorisations and the approval of the EC to the terms of the PPA and GSA.
YTL LAND & DEVELOPMENT BERHAD
YTL Land Achieves 9-Month Revenue of RM284.3 Million & Profit of RM42.6 Million
YTL Land’s revenue increased to RM284.3 million for the 9 months ended 31 March 2017 compared to RM133.9 million for the preceding year corresponding period ended 31 March 2016, whilst profit for the period increased to RM42.6 million this year compared to RM16.9 million last year. The increases in revenue and profit were due mainly to better site progress on The Fennel project currently under development, as well as unrealised foreign exchange gains on amounts due from its Singapore subsidiaries.
During the quarter under review, YTL Land also completed the acquisition of the remaining 30% equity interest in Sentul Raya Sdn Bhd (SRSB), resulting in SRSB becoming a wholly-owned subsidiary of YTL Land. SRSB is developing the iconic Sentul urban regeneration project in Kuala Lumpur.
YTL HOSPITALITY REIT
YTL Hospitality REIT Registers 9-Month Revenue of RM338.6 Million
Distributable Income Increases to RM92.0 Million
Interim Distribution of 1.8364 Sen per Unit Declared
YTL Hospitality REIT registered revenue of RM338.6 million for the 9 months ended 31 March 2017, an increase of 4.1% compared to RM325.1 million for the previous corresponding 9 months ended 31 March 2016, whilst net property income increased 6.7% to RM161.8 million for the 9 months under review over RM151.6 million for the same period last year.
Income available for distribution grew to RM92.0 million for the period under review over RM78.7 million recorded in preceding year corresponding period, representing an increase of 16.9%, after adjustment for non-cash items.
The Board of Directors of Pintar Projek Sdn Bhd, the Manager of YTL Hospitality REIT, declared an interim distribution of 1.8364 sen per unit, the book closure and payment dates for which are 9 June 2017 and 30 June 2017, respectively. The Trust’s income distribution for the quarter under review amounts to RM31.3 million, whilst the total cumulative distribution paid and declared for the 9 months ended 31 March 2017 is 6.1532 sen per unit, amounting to RM89.8 million, representing approximately 98% of total distributable income.
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