YTL Corp sees better performance in 4Q, declares 2.5 sen dividend

YTL Corp sees better performance in 4Q, declares 2.5 sen dividend
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KUALA LUMPUR (Sept 8): YTL Corp Bhd closed its fourth quarter ended June 30, 2021 (4QFY21) with a swing to profit before tax (PBT) of RM110.16 million, from a loss before tax of RM135.52 million a year earlier.

This was thanks to better performance across all segments, except management services, with the improvement led by the group’s utilities arm YTL Power International Bhd and cement divisions Malayan Cement Bhd, the group said in a bourse filing. 

YTL Corp declared a dividend of 2.5 sen per share for the quarter, after a rare occasion of missing a payout for FY20. Its sister company YTL Power also declared a dividend of two sen per share for the quarter, bringing its full-year payout to 4.5 sen per share.

The better pre-tax performance for YTL Corp came concurrently with a 23.45% improvement in quarterly revenue to RM4.37 billion, from RM3.54 billion in 4QFY20, as all segments posted a better top line.

However, a huge RM595 million deferred tax booked in the quarter resulted in a wider net loss of RM408.51 million from RM251.59 million in 4QFY20.

The same deferred tax led to YTL Corp’s full-year net loss for FY21 widening to RM368.69 million or 3.47 sen per share, from RM189.22 million or 1.78 sen per share in FY20.

At the PBT level, YTL Corp saw a 52.29% increase to RM638.52 million from RM419.29 million in FY20, as improvements in utilities, cement and construction divisions more than offset a swing to loss for hotels and management services divisions as well as wider losses for its property investment division.

This was despite full-year revenue declining 9.5% to RM17.36 billion, from RM19.18 billion previously, on weaker hotels and property investment divisions’ contributions.

Notably, net cash from operating activities remained stable at RM2.84 billion, down just 6.7% from RM3.04 billion in FY20.

YTL Corp executive chairman Tan Sri Francis Yeoh Sock Ping said in a statement: “The group continued to see good results, with our utilities division in particular being bolstered by the ongoing turnaround of the merchant multi-utilities business in Singapore (YTL PowerSeraya Pte Ltd).”

“Our cement division also turned in a strong performance on the back of disposal of cement operations in China, coupled with the increase in selling prices and volumes, and lower finance costs,” Yeoh said.

“The group’s EBITDA (earnings before interest, tax, depreciation and amortisation) remained robust at RM4.08 billion for the financial year, approximating last year’s results, underscoring the fundamental financial strength of our operating units despite challenges faced from the ongoing Covid-19 pandemic.

“We are optimistic that the solid performance from our key operating subsidiaries for the 12 months under review bodes well for the year ahead,” he added.

S Kanagaraju