KUALA LUMPUR (Nov 22): YTL Corp Bhd’s net profit slipped 5% to RM142.9 million in the first quarter ended Sept 30, 2017 (1QFY18), from RM150.33 million a year ago, as the group paid more tax and booked higher costs of sales and finance.

Taxation rose 57% to RM130.53 million, from RM83.15 million in 1QFY17. Cost of sales grew 11% to RM2.79 billion in 1QFY18, from RM2.51 billion, while finance costs rose 37% to RM419.92 million, from RM306.62 million in 1QFY17, its income statement filed on Bursa Malaysia showed. Other operating income which fell to RM57.31 million in 1QFY18, from RM65.83 million the previous year, also weighed on the quarter's performance. 

Revenue for the quarter, however, grew 13% year-on-year to RM3.93 billion, from RM3.49 billion, on higher revenue contribution from all its business segments.

In particular, its utilities business which contributed 63.7% to its revenue and made up 51.9% of its profit before tax (PBT), saw a 9% rise in revenue to RM2.5 billion in 1QFY18, from RM2.3 billion, while profit before tax (PBT) rose 13% to RM228.54 million, from RM201.81 million.  

Its cement manufacturing & trading business recorded a 11% rise in topline to RM637.74 million in 1QFY18, from RM575.77 million, but PBT fell 41% to RM44.49 million, from RM74.95 million the previous year, mainly due to higher production cost and the absence of liquidated damages imposed on the contractor for delay in the construction of a cement facility.

Its property investment and development revenue rose 40% to RM374.31 million in 1QFY18, from RM266.86 million, while PBT jumped 396% to RM190.42 million, from RM38.38 million in 1QFY17, largely due to a land disposal, following acquisition by the government for the Mass Rapid Transit project.

Moving forward, the group said the electricity market in Singapore under its utilities segment will remain competitive, while its water and sewerage — Wessex Water — is confident of delivering its 2015-2020 regulatory outperformance target by improving its processes.

YTL Corp also said YTL Power Generation Sdn Bhd has started operation on Nov 1 for the supply of power from its facility in Paka for three years and 10 months, to expire on June 30, 2021. The unit is expected to perform satisfactorily.

Its 45%-owned Attarat Power Company, which is developing a 554MW oil shale fired power generation project in Jordan, has inked a 30-year power purchase agreement with the state-owned utility company, and construction on the project has begun, with operations to start in mid-2020.

As for its cement industry, which remains highly competitive, a satisfactory performance is expected for FY18. Likewise for its property investment and development segment.

YTL Corp shares closed unchanged at RM1.20 today, with 4.46 million shares traded, giving it a market capitalisation of RM13 billion.