YTL Power International Berhad recorded a 10% increase in revenue to RM5,730.8 million (US$1,404.6 mn) for the 6 months ended 31 December 2018 compared to RM5,209.2 million (US$1,276.8 mn) for the preceding corresponding 6 months ended 31 December 2017, whilst the profit for the period stood at RM251.8 million (US$61.7 mn) this year over RM319.3 million (US$78.3 mn) for the same period last year.
Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, CBE, FICE, Executive Chairman of YTL Power, said, “YTL Power achieved a 10% growth in revenue for the first half of the 2019 financial year, mainly from our contracted power generation segment which commenced supply from the Paka Power Plant on 1 September 2017 under the new short-term power purchase agreement, as well as higher fuel oil prices in the merchant multi-utilities business segment.
“Profit for the period was impacted mainly by lower vesting contract levels and lower retail and tank leasing margins in the merchant multi-utilities division, in addition to the recognition of an allowance for the impairment of receivables following a court decision on outstanding litigation. Higher finance costs and the strengthening of Malaysian Ringgit against the British Pound in the water and sewerage business in the UK also affected performance for the period under review.”
In 2015, Seraya Energy Pte Ltd, the Group’s retail subsidiary in Singapore, commenced proceedings in court against two customers to recover monies due, following termination of the customers’ electricity retail contracts. On 2 January 2019, the High Court ruled in favour of Seraya Energy but awarded damages on a different basis from that claimed, resulting in nominal damages being paid to Seraya Energy.
However, Seraya Energy’s legal counsel has advised that there are real merits to appeal against the High Court’s decision on the issue of damages and steps are currently being taken to file theappeal. In the meantime, notwithstanding the outcome of any further action, the Group has recognised a provision for the sum of RM70.5 million (SGD23.4 million) in the quarter ended 31 December 2018 based on the decision of the court.