KUALA LUMPUR (Aug 21): YTL Power International Bhd (KL:YTLPOWR) saw its net profit fall 5.6% to RM1.07 billion in its fourth financial quarter ended June 30, 2024 (4QFY2024) from RM1.14 billion a year earlier, on lower contribution from its power generation and investment holding activities business segments.
This resulted in a lower earnings per share of 13.16 sen for 4QFY2024 compared with 14.02 sen for 4QFY2023.
Revenue for the quarter also came in lower at RM6.34 billion, down 10.5% from RM7.09 billion in 4QFY2023.
YTL Power declared a second interim dividend of four sen per share for the financial year ended June 30, 2024 (FY2024), payable on Nov 29. This brings its total dividends declared for FY2024 to seven sen per share.
Nevertheless, the group managed to end FY2024 on a positive footing, posting a net profit of RM3.46 billion, a 70.8% increase from RM2.03 billion in the previous year, on better performance in the power generation segment, which saw better margins, lower interest expenses following loan repayments and strengthening of Singapore dollar against the ringgit.
Revenue grew 2% to RM22.32 billion in FY2024 from RM21.89 billion in FY2023.
On prospects, YTL Power said as power generation is an essential service, electricity demand is expected to remain stable.
"This segment will continue to focus on customer service, operational efficiency and exploring diversification beyond the core business into integrated multi-utilities supply. The group will also be developing a large portion of the Kulai Young Estate into a large-scale solar power facility with a generation capacity of up to 500 megawatts (MW) to co-power a 500MW green data centre park. This is in line with the group’s shift towards investing in more sustainable renewable energy solutions moving forward," it said.
As for its telecommunication segment, YTL Communications expects to extend its 5G services to the rest of the country in tandem with the rollout of Digital National Bhd’s 5G network. "By continuing to offer affordable data plans and offering innovative 5G services, this segment is looking to increase its subscriber base bolstered by partnerships and collaborations," it said.
YTL Power expects the performance of its business segments to remain resilient due to the essential nature of its operations, and will continue to closely monitor the related risks and impact on all business segments.
YTL Power shares closed down 11 sen or 2.85% at RM3.75 on Wednesday, giving it a market capitalisation of RM30.98 billion. The stock has risen 45.9% so far this year.