YTL Corp's 4Q net profit climbs 5.5%; plans 9.5 sen dividend

KUALA LUMPUR (Aug 26): YTL Corp Bhd's net profit climbed 5.5% to RM260.52 million in the fourth quarter ended June 30, 2016 (4QFY16) from RM246.84 million a year ago, on better performance from its construction, property investment and development, as well as management services and others segments.

Revenue, however, fell 16.9% to RM3.37 billion from RM4.05 billion, according to its filing with Bursa Malaysia today, mainly dragged by lower contribution from its cement manufacturing and trading segment (down 14.8%) and its utilities segment (down 22.8%).

In a separate filing, YTL Corp proposed an interim single-tier dividend of 9.5 sen per share for the financial year ended June 30, 2016 (FY16), payable on Nov 15, the same quantum as its FY15 payout.

For the full year ended June 30, 2016 (FY16), YTL Corp's net profit declined 8.8% to RM927.94 million from RM1.02 billion, while revenue slid 8.3% to RM15.37 billion from RM16.75 billion.

YTL Corp expects its construction, information technology and e-commerce related business, cement manufacturing and trading, property investment and development, management services and others, and its hotels segments to post satisfactory performance in FY17.

As for its utilities segment, YTL Corp noted that its power purchase agreement (PPA) with Tenaga Nasional Bhd (TNB) had expired on Sept 30, 2015. Though it was awarded the project to supply 585MW of capacity from its existing Paka facility from March 1, 2016 to Dec 31, 2018 to a subsidiary under the short-term capacity bid called by the Energy Commission, a new PPA with TNB has yet to be signed as TNB included a condition for a new land lease to be entered into for the term of the new PPA.

YTL Corp said the Energy Commission subsequently issued a directive to TNB to remove condition, as the existing land lease for Paka will only expire at the end of the PPA.

"On July 4, TNB applied to the High Court for leave to commence proceedings for a judicial review to, inter alia, quash the directive. The proceedings are pending before the High Court," it said.

As for its water and sewerage division under the same segment, Wessex Water, which operates under a regulatory regime, "is confident of delivering its 2015–2020 regulatory outperformance target by restructuring its business objectives".

Yesterday, shares of YTL Corp rose 1 sen or 0.59% to RM1.70, for a market capitalisation of RM17.71 billion. — theedgemarkets.com

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