Weaker utilities, lower cement earnings drag on YTL Corp’s 2Q

KUALA LUMPUR (Feb 24): With no contracted power generation revenue and lower cement sales, YTL Corp Bhd’s net profit slumped 37% on-year to RM147.69 million in the second quarter ended Dec 31, 2016 (2QFY2017).

The group registered a net profit of RM234.92 million in the same quarter a year ago (2QFY2016). 

Consequently, earnings per share tumbled to 1.42 sen in 2QFY2017, from 2.25 sen, according to YTL Corp’s Bursa Malaysia filing this evening. Revenue was down 8% at RM3.62 billion, versus RM3.94 previously (2QFY2016).
 
For the cumulative six months ended Dec 31, 2016 (1HFY2017), net profit shrank 32% on-year to RM298.02 million, from RM437.54 million in 1HFY2016, while revenue fell 15% to RM7.11 billion, from RM8.39 billion.

Weaker utilities earnings saw a 36% drop in profit before tax (PBT) on the completion of a previous power purchase agreement between YTL Power Generation Sdn Bhd and Tenaga Nasional Bhd in September 2015, and lower fuel oil price. The segment contributes to about 61% of the group’s profit before tax.

Its cement segment posted a 40% decline in PBT, due to competitive pricing and lower sales. Its property investment and development segment also registered a 19% decline in PBT.

The declines could not be sufficiently offset by improvements in the group’s construction, information technology and e-commerce related businesses, as well as its management services and hotels businesses.

Going forward, YTL Corp said it expects all its seven business divisions to achieve satisfactory performance in FY2017.

In a separate announcement, YTL Corp’s 53.55%-owned YTL Power International Bhd, which houses its utilities business, reported a 45% drop in 2QFY2017 net profit to RM166.76 million, from RM302.71 million, while revenue decreased 6% to RM2.46 billion, from RM2.62 billion.

In 1HFY2017, YTL Power made a net profit of RM313.3 million, which is 36% lower versus RM489.4 million a year ago; while revenue fell 18% to RM4.81 billion, from RM5.84 billion.

YTL shares closed 1 sen higher at RM1.55 yesterday, valuing its market capitalisation at RM16.33 billion. — theedgemarkets.com

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from TheEdgeProperty.com http://www.theedgeproperty.com.my/content/1075791/weaker-utilities-lower-cement-earnings-drag-ytl-corps-2q

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