YTL Corp's Half-Year Revenue Grows 11% to RM8.6 Billion (US$2.1 Billion) Kuala Lumpur, Wednesday 27 February 2019 YTL Corporation Berhad registered a 10.6% increase in revenue to RM8,643.1 million (US$2,118.4 mn) for the 6 months ended 31 December 2018 compared to RM7,812.4 million (US$1,914.8 mn) for the preceding corresponding 6 months ended 31 December 2017. Profit for the period stood at RM421.9 million (US$103.4 mn) for the first half of the financial year ending 30 June 2019 as compared to RM604.7 million (US$148.2 mn) for the same period last year. YTL Corp Executive Chairman Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, CBE, FICE, said, “The Group’s revenue of RM8.6 billion and profit of RM422 million for the first half of the 2019 financial year remained satisfactory in view of ongoing pressures in some of our key markets. In our utilities segment, higher fuel oil prices resulted in an increase in revenue, although profit before tax was impacted by lower vesting contract levels and lower retail and tank leasing margins, coupled with an allowance for an impairment of receivables following a court decision on outstanding litigation recorded in the merchant multi-utilities business division. “The Group’s construction segment achieved higher revenue and profit before tax mainly due to the increase in construction works, anchored by the Group’s Gemas-Johor Baru rail project. Our cement division, meanwhile, saw a decrease in revenue and profit before tax due to the lower sales volumes. “The hotels segment registered higher revenue and profit before tax resulting from the consolidation of The Hague Marriott in The Netherlands and better performance of Star Hill Hotel Sdn Bhd, whilst the property investment and development segment saw lower revenue and profit due to the absence of the one-off gain recorded for the same period last year from the land disposal to Pentadbir Tanah Kuala Lumpur for the Mass Rapid Transit project.” YTL POWER INTERNATIONAL BERHAD Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, CBE, FICE, Executive Chairman of YTL Power, said, “YTL Power achieved a 10% growth in revenue for the first half of the 2019 financial year, mainly from our contracted power generation segment which commenced supply from the Paka Power Plant on 1 September 2017 under the new short-term power purchase agreement, as well as higher fuel oil prices in the merchant multi-utilities business segment. “Profit for the period was impacted mainly by lower vesting contract levels and lower retail and tank leasing margins in the merchant multi-utilities division, in addition to the recognition of an allowance for the impairment of receivables following a court decision on outstanding litigation. Higher finance costs and the strengthening of Malaysian Ringgit against the British Pound in the water and sewerage business in the UK also affected performance for the period under review.” In 2015, Seraya Energy Pte Ltd, the Group’s retail subsidiary in Singapore, commenced proceedings in court against two customers to recover monies due, following termination of the customers’ electricity retail contracts. On 2 January 2019, the High Court ruled in favour of Seraya Energy but awarded damages on a different basis from that claimed, resulting in nominal damages being paid to Seraya Energy. However, Seraya Energy’s legal counsel has advised that there are real merits to appeal against the High Court’s decision on the issue of damages and steps are currently being taken to file the appeal. In the meantime, notwithstanding the outcome of any further action, the Group has recognised a provision for the sum of RM70.5 million (SGD23.4 million) in the quarter ended 31 December 2018 based on the decision of the court. YTL LAND & DEVELOPMENT BERHAD YTL Land recorded revenue of RM106.8 million for the 6 months ended 31 December 2018 from RM202.5 million for the preceding year corresponding period ended 31 December 2017, whilst a loss for the period of RM15.5 million was recorded this year as compared to a profit for the period of RM45.2 million last year. Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, CBE, FICE, Executive Chairman of YTL Land, said, “YTL Land recorded revenue of RM106.8 million and loss before taxation of RM10.5 million in the current financial period. However, after adjusting for the one-off gain of RM120.7 million from the land disposal by YTL Land’s subsidiary, Udapakat Bina Sdn Bhd, following the acquisition by Pentadbir Tanah Kuala Lumpur for the Mass Rapid Transit project, revenue of RM68.6 million and a loss before tax of RM40.7 million would have been registered in the preceding corresponding financial period. “Therefore, adjusting for the one-off gain last year, YTL Land’s results for the current half-year under review represented a 56% increase in revenue and a 74% improvement in loss before tax compared to the same period last year. The increase in revenue was contributed by 3 Orchard By-The-Park undertaken by YTL Westwood Properties Pte Ltd and the Camellia Project undertaken by PYP Sendirian Berhad, whilst the improvement in loss before tax was the result of higher unrealised foreign exchange gains on amounts due from the Group’s Singapore subsidiaries following the strengthening of the Singapore Dollar in the current period.” YTL HOSPITALITY REIT YTL Hospitality REIT recorded revenue of RM246.3 million for the 6 months ended 31 December 2018, compared to RM255.2 million for the previous corresponding 6 months ended 31 December 2017. Net property income increased to RM125.6 million for the 6 months under review over RM122.8 million for the same period last year. Distributable income stood at RM65.8 million for the period under review compared to RM67.6 million last year. Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, CBE, FICE, Executive Chairman of Pintar Projek Sdn Bhd, the Manager of YTL Hospitality REIT, said, “YTL Hospitality REIT’s performance remained sound in the first half of the 2019 financial year. The Trust’s Australian Properties registered lower revenue and net property income due to the refurbishment exercise at Brisbane Marriott carried out in the current period, as well as the weakening of the Australian Dollar against the Malaysian Ringgit. “The Trust’s Malaysian Properties saw an increase in revenue and net property income mainly contributed by The Majestic Hotel Kuala Lumpur acquired in November 2017 and the step-up lease rental income of 5% every 5 years from the commencement of the lease agreement for the JW Marriott Hotel Kuala Lumpur. Meanwhile, the Trust’s Japanese properties registered higher revenue and net property income due to the acquisition of The Green Leaf Niseko Village in September 2018.” The Board of Directors of Pintar Projek Sdn Bhd, the Manager of YTL Hospitality REIT, declared an interim distribution of 1.9387 sen per unit, the book closure and payment dates for which are 13 March 2019 and 29 March 2019, respectively. The total income distribution amounts to RM33.0 million, representing approximately 100% of the total distributable income for the financial quarter ended 31 December 2018. View individual reports below: |