YTL Corp profit hits new high

YTL Corp Bhd’s full-year revenue and profit hit a new high, with the diversified group receiving a big boost from its purchase of Wessex Water Ltd. 

The company saw revenue cross the RM4bil mark and pre-tax profit pass the RM1bil threshold for its financial year ended June 2003. It also expects its 2004 financial year results to be satisfactory. 

Tan Sri Francis Yeoh

YTL Corp has declared a final dividend of 7.5 sen per share. Its subsidiaries, YTL Power International Bhd and YTL Cement Bhd, have each announced dividends of 20 sen per share. 

The YTL group said it was confident of sustaining the increase in dividends over the next five years based on its financial performance and prospects from its regulated assets. 

“When regulated assets deliver earnings, they are exciting and are not held hostage to economic cycles,” YTL Corp managing director Tan Sri Francis Yeoh said. 

“And this puts us in a good position to expand elsewhere,” he told StarBiz yesterday. 

YTL Corp saw its revenue rise nearly 60% to RM4.05bil from a year ago and pre-tax profit expand slightly more than 30% to RM1.05bil. Net profit jumped 42% to RM515mil. Earnings per share rose to 35.51 from 25.06 sen last year. 

In a statement yesterday, YTL Corp said all its business units performed extremely well, adding that the group remained firmly grounded in its investments in regulated infrastructure assets. 

The company said its major investments now spanned three continents and that more than 40% of group revenue was derived from operations in Australia and Britain. 

YTL Power posted a near 30% rise in pre-tax profit to RM837mil for the year to June 2003, with revenue rising 112% to more than RM3.18bil. Net profit jumped 24% to RM603mil, while earnings per share improved to 26.68 from 21.62 sen. 

“YTL Power’s record growth in turnover and profit is attributed predominantly to the consolidation of a full year’s financial results of Wessex Water, which has already seen the value of its regulatory base increase by 8.9% to £1.47bil (RM9.1bil) from £1.36bil a year ago,” the statement said. 

YTL Cement, operating in a market it described as challenging, saw turnover rise around 1% to RM428mil. Pre-tax profit improved marginally to RM80.8mil, even though the cost of raw materials rose. The firm earned a net profit of RM67mil or 47.65 sen per share. 

“The improvement in financial performance is attributable to the enhanced quality of the group’s products and services in the market, which continued to generate high levels of demand, especially in its niche markets for pre-cast and ready-mixed concrete,” the statement said. 

YTL Land & Development Bhd saw revenue rise 77% to RM41.4mil for the year ended June. Pre-tax profit fell marginally from a year ago to RM20.7mil, while net profit, at RM21.8mil, was flat. 

“With the acquisitions (of RM262mil of new property development assets) now completed, YTL Land has been able to focus on its stable of projects, including the Sentul development, which this year saw the successful launch of The Park at Sentul West and the Maple luxury condominiums,” the statement said. 

The group’s Mesdaq market-listed YTL e-Solutions Bhd reported a 45% rise in revenue to RM25.9mil from last year, while pre-tax profit surged 57% to RM13.8mil. Net profit increased nearly 50% to RM7.7mil. 

On the outlook for the group, Yeoh said: “We remain positive. Profit will continue to grow because we have long-term concessions.” 

Stock watch on YTL Stock Watch On YTL

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