YTL Power International Berhad registered revenue of RM10,670.3 million (US$2,552.7 mn) for the 12 months ended 30 June 2020, compared to RM11,732.7 million (US$2,806.9 mn) for the preceding corresponding period ended 30 June 2020, whilst profit before tax stood at RM423.8 million (US$101.4 mn) for the current period under review compared to RM753.4 million (US$180.2 mn) for the same period last year.
YTL Power declared a share dividend of 1 treasury share for every 16 existing ordinary shares held, the entitlement date for which is 28 October 2020.
Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, KBE, CBE, FICE, Executive Chairman of YTL Power, said, ”As our Group’s utilities are essential in nature, these businesses have continued to operate throughout the current control period despite the implementation of various movement control orders which limited the operation of non-essential services in countries where we operate.
”Higher revenue in the water and sewerage segment in the UK was primarily due to differing weather conditions leading to changes in supply volumes and partially offset by a price decrease determined by the industry regulator. Lower profit before tax resulted mainly from a higher allowance for impairment of receivables of RM113.8 million due to the potential impact of the pandemic on customers. However, once such impairments are realised, the UK regulatory regime allows for recovery against future tariffs.
”The Group also recognised one-off deferred tax expenses of RM162.4 million due to the re-measuring of deferred tax balances as at 30 June 2020, which contributed to the lower profit after tax of RM125.6 million this year. These expenses arose from the increase in the UK corporation tax rate from 17% to 19% for 2020-21 after repeal of the previous legislation that had reduced the rate to 17%.
”In addition to consistent earnings, Wessex Water has the added advantage of a regulated asset base (RAB) that increases in value over time. Over the past 5 years, Wessex Water’s RAB value increased from RM15.11 billion (GBP2.75 billion) to RM17.79 billion (GBP3.35 billion). As we continue to invest further, the RAB value is expected to increase further to RM20.66 billion (GBP3.89 billion) by the end of the current regulatory pricing period in 2025.
”Our merchant multi-utilities business in Singapore registered lower revenue but the division’s loss before tax narrowed due mainly to the absence of a one-off charge for impairment of receivables recognised last year, as well as lower finance costs and higher retail and tank leasing margins for the current period. We are also working towards completion of our proposed acquisition of the Tuaspring power plant which is expected to contribute positively going forward.”