KUALA LUMPUR: YTL Corporation Berhad reported high revenue and net profit for the first half of its current fiscal year, which ends June 30, 2022, owing to improved performance in its utilities and property segments.
Group revenue for the six months ended December 31, 2021 increased 35.9 per cent to RM11.92 billion (US$2.84 billion) from RM8.77 billion (US$2.09 billion) for the previous corresponding six months ended December 31, 2020.
Net profit soared 79.9 per cent to RM241.3 million (US$57.6 million) from RM134.1 million (US$32 million) the previous year.
Tan Sri Sir Francis Yeoh Sock Ping, executive chairman of YTL, said as lockdowns eased, the group was cautiously optimistic about its continued strong performance over the next six months.
YTL's Ebitda (earnings before interest, tax, depreciation, and amortisation) remained stable, increasing 7.3 per cent to RM2.18 billion (US$520 million) in the current period from RM2.03 billion (US$484.4 million) in the previous period.
Yeoh said the utilities division, led by YTL Power International Bhd, recorded higher revenue across nearly all sub-segments.
YTL Power's half-year revenue increased 69 per cent to RM8.6 billion (US$2.1 billion) with a pre-tax profit of RM177 million (US$42 million)
"The higher revenue was due mainly to higher pool and fuel oil prices in the merchant multi-utilities segment, coupled with growth in the non-household retail market, increased prices allowed by the regulator and strengthening of the British Pound in the water and sewerage segment," Yeoh said in a statement today.
The division's pre-tax profit was impacted by higher fuel costs in the current fiscal period and the absence of recovery of receivables impairment recognised in the previous fiscal period, which was partially offset by higher pool gains in the merchant multi-utilities division.
According to Yeoh, YTL Communications Bhd, YTL Power's telco business, had continued to improve due to subscriber growth spurred by the launch of affordable data plans, which has been supported by partnerships and collaborations.
YTL Communications launched its 5G services in December 2021, coinciding with the launch of Malaysia's 5G wholesale services in the Klang Valley by Digital Nasional Bhd, becoming the first telco in Malaysia to offer 5G access to its customers, delivering higher data speeds, ultra-low latency, more reliable coverage, massive network capacity, and a more uniform user experience.
Meanwhile, YTL Power divested its 33.5 percent stake in ElectraNet Pty Ltd in Australia earlier this month, which it purchased for about RM122.9 million in 2000.
Yeoh stated that the timing was ideal due to the attractive valuation of regulated utility assets, with the sale consideration of A$1.03 billion (about RM3.06 billion) representing a valuation of 1.6 times ElectraNet's regulated and contracted asset base (RCAB).
He said the divestment was currently pending completion, which was expected by the end of this fiscal year.
Yeoh also said the group's construction and cement segments, both of which have remained profitable, had maintained healthy margins.
Malayan Cement Bhd's revenue increased 54 per cent to RM1.106 billion (US$263.9 million) in the first half of fiscal year 2022, from RM718.4 million (US$171.5 million) the previous corresponding six months ended December 31, 2020.
The cement company turned a pre-tax profit of RM47.1 million (US$11.2 million) in comparison to a pre-tax loss of RM5.1 million (US$1.2 million) in the same period last year.
Yeoh said the significant improvement in performance for the six months under review was due to the consolidation of the ten cement and ready-mixed concrete companies and their respective subsidiaries, which were acquired from YTL Cement Bhdd in September 2021.
"The successful completion of this acquisition has increased Malayan Cement's size, which has bolstered profitability and value enhancement," he said.
YTL's REIT business, YTL Hospitality REIT, reported a 14 per cent increase in revenue to RM180 million (US$43 million).
Its distributable income increased by four per cent to RM36 million (US$9 million), while its net property income increased 11.1 per cent to RM113.5 million (US$27.1 million).