YTL Corp Records 1st Quarter Revenue of RM5.3 Billion (US$1.3 Billion) & Profit Before Tax of RM184 Million (US$44 Million)
Kuala Lumpur, November 26, 2019
YTL Corporation Berhad’s revenue increased to RM5,284.7 million (US$1,270.4 mn) for the 3 months ended 30 September 2019 compared to RM4,088.5 million (US$982.8 mn) for the preceding corresponding quarter ended 30 September 2018. Profit before tax stood at RM184.1 million (US$44.3 mn) for the current quarter compared to RM341.9 million (US$82.2 mn) for the same period last year.
YTL Corp Executive Chairman, Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, KBE, CBE, FICE, said, “The Group saw a 29.3% increase in revenue to RM5.3 billion for the quarter under review, with all business segments turning in better performances. The utilities segment achieved higher revenue from improved sales volumes of fuel oil and electricity, although the significant reduction in vesting contract levels across the industry and losses on sales of fuel oil in the merchant multi utilities division, coupled with the absence of project revenue in the telecommunications segment, resulted in lower profit before tax.
“The increase in revenue in the cement division resulted mainly from the consolidation of Malayan Cement Berhad for a full quarter and higher sales volumes from all other divisions. However, the segment incurred a loss before tax due to higher finance costs. Meanwhile, the significant increase in revenue and profit before tax in the construction segment was due to a substantial increase in construction works.
“The hotels segment continued to perform well, driven mainly by The Westin Perth hotel in Australia and better performance of Star Hill Hotel Sdn Bhd which operates the JW Marriott Hotel Kuala Lumpur following the completion of its refurbishment exercise in June 2019, whilst in the property segment, revenue increased as a result of sales of completed properties of 3 Orchard By-The-Park and The Fennel.”
YTL POWER INTERNATIONAL BERHAD
YTL Power recorded revenue of RM2,959.5 million (US$711.4 mn) for the 3 months ended 30 September 2019, compared to RM2,803.4 million (US$673.9 mn) for the preceding corresponding quarter ended 30 September 2018. Profit before tax stood at RM107.7 million (US$25.9 mn) for the quarter under review compared to RM190.7 million (US$45.9 mn) for the same period last year.
Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, KBE, CBE, FICE, Executive Chairman of YTL Power, said, “YTL Power’s revenue increased by 5.6% for the quarter, contributed mainly by the merchant multi utilities and investment holding segments, with profit before tax of RM107.7 million.
“The multi utilities segment registered higher revenue on the back of higher sales of fuel oil and higher volumes of electricity sold, although the segment incurred a loss before tax due to the industry’s significant reduction in vesting contract levels and losses on sales of fuel oil, partially offset by lower depreciation charges. Nevertheless, EBITDA for the segment remained positive.
“Higher revenue in the water and sewerage segment arose mainly due to an increase in the price allowed by the industry regulator, with higher operating costs leading to lower profit before tax for the quarter.
“Meanwhile, better performance in the investment holding segment was due primarily to the recognition of accrued technical service income and a fair value gain on investment. The telecommunications business saw a decrease in revenue and a higher loss before tax resulting from the absence of project revenue in the current quarter, although EBITDA for the segment remained positive.”
MALAYAN CEMENT BERHAD (formerly known as Lafarge Malaysia Berhad)
Malayan Cement recorded revenue of RM465.9 million for the 3 months ended 30 September 2019 compared to RM495.1 million for the preceding corresponding 3 months ended 30 September 2018, with the loss before tax for the quarter under review decreasing to RM42.4 million compared to RM134.5 million for the same period last year.
Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, KBE, CBE, FICE, Executive Chairman of Malayan Cement, said, “The decrease in revenue was mainly due to lower cement sales resulting from weak domestic market conditions, in addition to the competitive environment which continued to put downward pressure on selling prices, partially offset by an increase in export sales and higher sales by our Singapore subsidiary.
“The loss before tax decreased significantly for the current quarter compared to same period last year due to vigorous cost cutting measures and savings from manpower rationalisation. The loss recorded in the corresponding quarter last year also included employee separation costs and inventory write-offs.”
As of 18 November 2019, the financial year end of Malayan Cement was changed to 30 June, from 31 December previously.
YTL HOSPITALITY REIT
YTL Hospitality REIT recorded revenue of RM120.7 million for the 3 months ended 30 September 2019, a 6% increase compared to RM113.9 million for the previous corresponding 3 months ended 30 September 2018, whilst net property income (NPI) grew 11% to RM62.7 million this quarter over RM56.3 million for the same period last year. Income available for distribution increased to RM33.4 million for the period under review over RM32.8 million recorded in preceding year corresponding quarter.
Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, KBE, CBE, FICE, Executive Chairman of Pintar Projek Sdn Bhd, the Manager of YTL Hospitality REIT, said, “YTL Hospitality REIT achieved better performance for the first quarter of the 2019 financial year. The Trust’s Australian properties registered increases of 3.2% in revenue and 9.4% in NPI for the current quarter due to continuous improvements in room sales following the completion of the Brisbane Marriott’s refurbishment.
“YTL Hospitality REIT’s Malaysian portfolio turned in a 4.3% increase in revenue and 4.3% growth in NPI resulting from additional rentals recorded by the JW Marriott Hotel Kuala Lumpur following the recent refurbishment completed in June 2019. The Trust’s Japanese properties also achieved higher revenue and NPI following 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 1.9584 sen per unit, the book closure and payment dates for which are 10 December 2019 and 27 December 2019, respectively. The total income distribution amounts to RM33.4 million, representing approximately 100% of the total distributable income for the financial quarter ended 30 September 2019.
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