KUALA LUMPUR: YTL Power International Bhd
posted 9.6% lower earnings of RM132.45mil in its first quarter versus RM146.55mil in the year-ago quarter while revenue rose 10% to RM2.58bil from RM2.34bil.
Earnings per share for the quarter was 1.71 sen versus 1.90 sen in same quarter last year.
Profit before tax for the quarter under review was RM212.87mil, 12.8% higher from the year-ago quarter, on lower operating costs in the mobile broadband segment and commencement of its Paka facility's short-term capacity generation on Sept 1, 2017.
As for the group's other segments, the multi-utilities business saw lower profit due to higher financing costs incurred in the quarter.
In the water and sewerage segment, there was revenue growth owing to the opening of the retail market for non-household customers and a price increase as allowed by the regulator.
However, higher financing costs brought profit before tax tax lower for the quarter.
In investment holding activities, revenue increased on higher interest income although profit before tax declined on higher financing costs, partially offset by an increase in the share of results of the associate companies.
Moving forward, the group noted that the Indonesian coal-fired power project undertaken by its 80%-owned unit, PT Tanjung Jati Power Company, is in the development stage, while its 45%-owned Attarat Power company is also developing a 554-megawatt oil shale fired power generation project in Jordan.
Both projects have 30-year power purchase agreements with the respective countries' state-owned utility companies, with an option to extend in Jordan.
For the multi-utilities business, the group noted that its electricity market in Singapore will remain competitive owing to volatilities in the global markets and generation capacity oversupply.
"Despite current challenges, this segment will continue to focus on customer service, diversification beyond the core business into integrated multi-utilities supply and non-regulated ancilary businesses in steam sales, oil storage tank leasing, bunkering services and potable water sales," it said.
It is also confident its Wessex Water business, which operates under a strict regulatory regime, will deliver its 2015-2020 regulatory outperformance target.
In the mobile broadband network, the group aims to increase the subscriber base via its nationwide 4G LTE and Voice-over-LTE services.
In its implementation of the 1BestariNet project to bring Internet technology to Malaysian students, the group said one of the features includes the provision of the Frog VLE learning platform to more than 10,000 state schools.
"Plans are also underway to roll out the LTE version of the Yes Zoom gateway device as well as to expand the Yes platform into Sarawak in the near future," it said.
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