YTL Corp’s net profit falls 36% in 1Q as YTL Power’s earnings decline

• During the quarter under review, YTL Power’s power generation business recorded a 27.2% lower PBT of RM746.74 million, compared with RM1.03 billion previously, on the back of 13.9% lower revenue of RM3.27 billion.

KUALA LUMPUR (Nov 26): The net profit of YTL Corp Bhd (KL:YTL) fell by more than a third in the first quarter of its financial year, as contributions from its utilities business, represented by its 55.57% stake in YTL Power International Bhd (KL:YTLPOWR) declined.

Net profit for the quarter ended Sept 30, 2024 (1QFY2025) fell 36% to RM333.7 million, compared with RM521.73 million a year ago. Its earnings per share declined to 3.03 sen, from 4.76 sen a year ago.

No dividends were declared during the quarter.

The decline in YTL’s net profit was despite a 3.36% increase in its quarterly revenue to RM7.77 billion. Revenue of its utilities business also increased during the quarter to RM5.23 billion, compared with RM5.19 billion in the corresponding quarter a year ago.

However, the utilities business’ profit before tax (PBT) fell 16.3% year-on-year to RM930.8 million during the quarter.

During the quarter under review, YTL Power’s power generation business recorded a 27.2% lower PBT of RM746.74 million, compared with RM1.03 billion previously, on the back of 13.9% lower revenue of RM3.27 billion.

The lower revenue and PBT at its power generation business was due to lower pool and retail prices, according to YTL Power.

YTL Power’s net profit for the quarter stood at RM470.6 million compared with RM847.91 million a year ago, despite the company registering higher revenue of RM5.68 billion. In 1QFY2024, YTL Power’s revenue stood at RM5.45 billion.

Earnings per share during the quarter fell to 5.74 sen from 10.47 sen a year ago. No dividend was declared for the quarter.

YTL Power owns YTL PowerSeraya Pte Ltd, which operates power plants in Singapore with a licensed generating capacity of 3,100MW. PowerSeraya also operates Geneco, an electricity retailing business in the city state.

Meanwhile, the group’s investment holding activities returned a pre-tax loss of RM112.63 million during the quarter, compared with a PBT of RM112.57 million previously. The loss was mainly due to higher unrealised foreign exchange loss arising from a shareholder loan extended to a project entity in Jordan.

YTL Power owns a 45% equity interest in APCO, which owns and operates a 554MW oil shale-fired mine-mouth power plant in Jordan. APCO has a 30-year power purchase agreement (PPA) with the National Electric Power Company, Jordan’s state-owned utility, with an option for the PPA to be extended to 40 years.

Its water and sewerage business turned a profit during the quarter with a PBT of RM55.26 million, on the back of 43.1% higher revenue of RM1.74 billion. The improvement in PBT was mainly due to an increase in price as allowed by the regulator in the UK.

Besides the increase in price of water services in the UK, the increase in revenue in the water and sewerage business was also due to the contribution from Ranhill Utilities Bhd (KL:RANHILL). YTL Power owns 53.19% of Ranhill, which operates Johor’s water services through Ranhill SAJ Sdn Bhd.

Its telecommunications business also saw improvements, as its pre-tax loss narrowed to RM24.59 million during the quarter, compared with a loss of RM71.46 million previously, with revenue 26.8% higher at RM233.85 million.

The group expects the performance of its business segment to remain resilient due to the essential nature of its operations, it said.

YTL closed 10 sen or 5.41% higher at RM1.95 per share on Tuesday, valuing the conglomerate at RM21.64 billion. Its Bursa-listed subsidiary YTL Power meanwhile was last traded at RM3.20 apiece, 14 sen or 4.58% higher on Tuesday, with a market capitalisation of RM26.46 billion.

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