KUALA LUMPUR: YTL Corp Bhd is cautiously optimistic about the group’s continuing strong performance for the next six months as Covid-19 pandemic lockdowns taper off.

       “Our construction and cement segments, which have remained consistently profitable, continued to see healthy margins,” said YTL Corp executive chairman Tan Sri Francis Yeoh Sock Ping in a statement on the group’s results for the first half ended Dec 31, 2021 (H1 FY22).

       For the six months under review, YTL Corp’s profit after tax increased 79.9% year-on-year (y-o-y) to RM241.3mil while revenue grew 35.9% to RM11.9bil.

       Yeoh said revenue growth in H1 FY22 was mainly contributed by the utilities and property segments.

       “The utilities division registered higher revenue across almost all sub-segments. The property segment recorded significantly better performance due to sales recorded under the Brabazon project in the United Kingdom, with profit also bolstered by a higher share of profits from Starhill Global real estate investment trust (REIT) in Singapore,” he said.

       “In our hotels segment, better performance of our hotels in the UK and Malaysia led to higher revenue in the current period,” added Yeoh.

       Meanwhile, YTL Power International Bhd’s half-year revenue increased 69% y-o-y to RM8.6bil due mainly to higher pool and fuel oil prices in the merchant multi-utilities segment, coupled with growth in the non-household retail market, increased prices allowed by the regulator and strengthening of the British pound in the water and sewerage segment.

       However, YTL Power’s profit before tax dropped 44% y-o-y in the half-year under review to RM176.5mil, due mainly to increased fuel costs and the absence of recovery of impairment of receivables recognised a year earlier, which was partially offset by increased pool gains in the merchant multi-utilities division.

       Yeoh also noted that earlier this month, the group had started the divestment of its 33.5% stake in ElectraNet Pty Ltd in Australia, which was acquired for RM122.9mil in 2000.

       “The timing proved optimal in light of the attractive valuation of regulated utility assets, with the sale consideration of A$1.026bil (RM3.5bil) representing a valuation of 1.6 times ElectraNet’s regulated and contracted asset base (RCAB). The divestment is estimated to take place by the end of FY22,” he said.

       As for Malayan Cement Bhd, its half-year pre-tax profit was RM47mil (compared to a loss before tax of RM5.1mil a year earlier) while revenue increased 54% y-o-y to RM1.1bil, due to consolidation of results of the 10 cement and ready-mixed concrete companies and their respective subsidiaries which were acquired in September 2021 from YTL Cement Bhd.

       “The successful completion of this acquisition has increased the size of Malayan Cement, which has in turn bolstered profitability and value enhancement,” said Yeoh.

       As for YTL Hospitality REIT, for the half year under review, distributable income increased 4% y-o-y to RM36mil while revenue grew 14% to RM179.9mil and net property income (NPI) grew 11.1% to RM113.5mil.

       “Revenue and NPI in the trust’s hotel segment increased due to improved performance by our Australian portfolio, resulting from participation in the government isolation group business programme as well as internal cost saving efforts. Meanwhile, in the property rental segment, revenue and NPI continued to remain stable at similar levels to the same period last year,” said Yeoh.

       YTL Hospitality REIT declared an interim income distribution of 1.888 sen per unit for the six months under review.