YTL returns to the black in 1Q as utilities, cement manufacturing divisions improve q-o-q

KUALA LUMPUR (Nov 27): YTL Corp Bhd returned to the black in the first quarter ended Sept 30, 2020 (1QFY21) with a net profit of RM1.29 million or 0.01 sen per share after reporting a net loss of RM252.23 million or 2.36 sen per share in the preceding fourth quarter.

This was supported by 19% higher revenue in the quarter of RM4.18 billion against RM3.52 billion in 4QFY20.

In a filing yesterday, it said the significant improvement was primarily attributable to the better performance in its cement manufacturing and trading as well as utilities segments, coupled with the absence of the share of fair value loss on investment properties recorded by Starhill Global Real Estate Investment Trust (REIT), in which it has a 37.48% stake directly and via subsidiaries.

“The loss after taxation in the preceding quarter was mainly due to the recognition of deferred tax expenses arising from the increase in UK corporation tax rate from 17% to 19%,” it added.

Year-on-year, it reported a net profit drop of 92% from RM15.31 million last year or 0.14 sen per share, as revenue also fell 21% from RM5.28 billion, reflecting the direct impact of Covid-19 on the performance of its operating business segments.

On its prospects, YTL said the group’s businesses have been cushioned by its utilities segment which by nature is classified as essential services and therefore had continued operating throughout the various Movement Control Orders.

As operations gradually return back to normal, its construction and cement segments have also re-commenced activity in stages, it noted.

“The impact of the Covid-19 pandemic in the longer term cannot be accurately estimated as there are still significant uncertainties on how and when this pandemic can be contained and full business activity to be resumed,” it said.

Despite the challenging outlook, the group expects the performance of its business segments to remain resilient as these segments' operations are substantially essential in nature, it said.

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