YTL Corp Bhd’s revenue rose 6.2% to RM19.17 billion for the 12 months ended June 30 versus RM18.05 billion a year ago, while profit before tax (PBT) stood at RM430 million compared with RM1.03 billion a year ago.

Executive chairman Tan Sri Francis Yeoh Sock Ping said the rise in revenue was contributed mainly by its construction and cement segments.

“After eliminating the losses arising from fair value changes, impairments and inventory write-downs of RM 226.2 million, the group recorded PBT of RM656.2 million for the current financial year, ” Yeoh said.

He said the April-June quarter involved some of the most stringent parts of the ongoing movement control order (MCO) in Malaysia and various lockdowns and border closures in countries where the group operates.

“These measures have hampered the operations of certain parts of their businesses during various periods of the quarter, ” he said.

Nevertheless, he said the group’s long-term strategy of investing in regulated assets that provide essential services such as water and electricity continue to operate profitably during even the most difficult times, albeit at lower levels.

This cushioned the group from the impact of even the most unprecedented events, he said.

“Our utilities division continues to serve as the cornerstone of our group’s financial stability, providing water to customers in the UK, electricity in Malaysia and Singapore and internet connectivity across Malaysia.

“Our cement and construction businesses have returned to operation, while our hotels have started to see good recovery particularly from domestic travellers holidaying within the country, ” he said.

The group will take every effort to mitigate the effects of the ongoing Covid-19 pandemic, and remain committed to the prudent financial management.

The group declared share dividends of 1-for-30 for YTL Corp, representing a dividend yield of about 3.3%, and 1-for-16 YTL Power, for a yield of about 6.3%.

Yeoh said the group will continue to “reward” shareholders while “conserving cash” for future opportunities for further growth.

As for YTL Power International Bhd, the company recorded a 12-month revenue of RM10.67 billion and PBT of RM424 million, compared with RM11.73 billion and RM753.5 million, respectively, a year ago.

Yeoh, the executive chairman of YTL Power, said the group’s utilities businesses are essential in nature and these businesses have continued to operate throughout the current control period despite the implementation of various MCO.

“Higher revenue in the water and sewerage segment in the UK was primarily due to differing weather conditions leading to changes in supply volumes and partially offset by a price decrease determined by the industry regulator.

“Lower PBT resulted mainly from a higher allowance for impairment of receivables of RM113.8mil due to the potential impact on the pandemic on customers.

“However, once such impairments are realised, the UK regulatory regime allows for recovery against future tariffs.

“The group also recognised one-off deferred tax expenses of RM162.4 million due to the re-measuring of deferred tax balances as at June 30,2020. This resulted in the lower profit after tax (PAT) of RM125.6 million this year, ” he said.

These expenses arose from the increase in the UK corporation tax rate from 17% to 19% for 2020-21 after repeal of the previous legislation that had reduced the rate to 17%.

The group’s merchant multi-utilities business in Singapore registered lower revenue but the division’s loss before tax narrowed due mainly to the absence of a one-off charge for impairment of receivables recognised last year, as well as lower finance costs and higher retail and tank leasing margins for the current period.

They are also working towards completion of its proposed acquisition of the Tuaspring power plant which is expected to contribute positively going forward.

Malayan Cement Bhd, formerly Lafarge Malaysia Bhd, recorded 18-month revenue of RM2.41 billion and loss before tax of RM318.9 million.

Yeoh, the executive chairman of Malayan Cement, said the group incurred a loss before tax mainly from lower revenue caused by the contraction in domestic cement demand. It was further compounded by the MCO.

Due to the lower domestic demand, the group’s various production facilities were also not in operation for a substantial part of the current quarter.

He said the group has undertaken vigorous cost-cutting measures and manpower rationalisation, and will also be bolstering export volumes via production from its Langkawi plant.

Source: The Star, August 29