YTL Corp posts lower Q2 earnings

PETALING JAYA: YTL Corp Bhd saw its net profit decline 14.6% to RM126.09 million for the second quarter ended Dec 31, 2017, from RM147.69 million in the previous corresponding quarter due to lower earnings from most business segments.

Revenue for the quarter up 7.7% to RM3.9 billion compared with RM3.62 billion in the same period a year ago.

In a filing with Bursa Malaysia, the group said the decrease in revenue and profits for its construction business was mainly due to lower site progress recorded.

Its hotel division recorded a decrease in profit attributed to the unrealised foreign exchange loss on inter-company balances, ongoing phased renovation as well as training expenses.

The cement manufacturing and trading segment also saw a dip in profit on the back of higher production cost and competitive pricing in the domestic market.

The utilities business, meanwhile, was dragged by lower margin for both electricity sales and oil tank leasing, coupled with higher finance cost recorded by multi utilities business division.

On its prospects, YTL said it expects the construction segment to achieve satisfactory performance for the financial year ending June 30, 2018 as the construction contracts relate mainly to the group’s property development and infrastructure works.

For the six-month period, its net profit decreased 9.7% to RM268.99 million against RM298.02 million a year ago, while revenue grew 10% to RM7.83 billion from RM7.11 billion previously.

Its share price gained one sen or 0.68% to close at RM1.48 on 8.35 million shares traded.