Khazanah portfolio at Rm87bil

Mega IPOS lift its net worth adjusted by 24.3%, outperforming KLCI’S total return of 14.1%

KUALA LUMPUR: Khazanah Nasional Bhd’s portfolio grew to a record RM86.9bil by net worth adjusted in 2012, lifted by the mega initial public offerings of IHH Healthcare Bhd and Astro Malaysia Holdings Bhd and a “banner year” in Iskandar Malaysia.

Its net worth adjusted improved by 24.3% or RM16.9bil from RM70bil in 2011, outperforming the FTSE Bursa Malaysia KL Composite Index’s total return of 14.1%.

Khazanah’s investments in the power and telecommunications sectors via Tenaga Nasional Bhd, Axiata Group Bhd and Telekom Malaysia also boosted its portfolio.

The state investment vehicle’s realisable asset value increased by 12.4% or RM13.4bil to RM121.6bil as at Dec 31, 2012.

Its pre-tax profit, however, fell 61.44% to RM2.06bil from RM5.34bil in 2011 and dividend 66.67% to RM1bil from RM3bil. Khazanah has paid out RM4.5bil in dividends over the past three years.

In 2010, it posted a pre-tax profit of RM2.08bil and declared a dividend of RM500mil.

To this, managing director Tan Sri Azman Mokhtar said the results in 2011 saw a huge boost from the privatisation of PLUS Expressways Bhd, which was one-off.

“We think RM2bil in profit is a decent number. One should judge Khazanah by both its realised and unrealised portfolio,” he said at the company’s yearly review with the media.

On why Khazanah was paying over RM1bil in dividends despite the lower earnings, Azman said: “We are on year eight of the revamp, so we think it is fair that we adopt a balanced approach in terms of dividends. A 50% payout is decent. More important is that we reinvest our profits.”

He noted that Khazanah’s portfolio based on its net worth adjusted had experienced a compound annual growth rate of 11.8% since 2004 when the firm started its transformation programme.

Its portfolio growth last year also outpaced the performance of most regional indices with the exception of Singapore’s Straits Times Index.

Khazanah made seven major new investments last year totalling RM6.2bil in value and 10 divestments that brought in proceeds of RM4.8bil, generating gains of RM2.1bil.

Between 2004 and 2012, Khazanah made 95 investments worth RM51.4bil and 55 divestments valued at RM35.7bil, recording gains on divestments of RM15.7bil.

On whether Khazanah would participate in bidding for the UK’s Stansted Airport alongside YTL Corp Bhd and Malaysia Airports Holdings Bhd, who are said to be pursuing the RM5bil deal, Azman replied that it was only involved indirectly via its unit Malaysia Airports Holdings Bhd.