KUALA LUMPUR (Feb 20): YTL Power International Bhd’s net profit was marginally lower at RM70.26 million for the second quarter ended Dec 31, 2019 (2QFY20), dropping 2.11% from RM71.77 million.   

Quarterly earnings per share declined to 0.92 sen from 0.94 sen in 4QFY18. The power producer did not declare any dividend. The group’s revenue slid 4.5% to RM2.8 billion from RM2.93 billion.

In a filing today, YTL Power said its telco segment incurred lower revenue and wider pre-tax losses in the absence of a project in the quarter under review.

Meanwhile its Singapore multi-merchant business recorded lower pre-tax losses in the absence of a one-off charge incurred in the same quarter last year, coupled with lower depreciation charges despite lower vesting contract level.

For its other business, YTL Power posted growth in its contracted power generation segment as it sold more electricity. Meanwhile its water and sewerage business in the UK contribution retreated slightly due to higher operating costs, despite the regulated price increase which lifted revenue.

For the first six months ended Dec 31, 2019, YTL Power net profit dropped 30.51% to RM137.62 million from RM198.05 million, mainly due to the wider losses in the telco segment while partially offset by better performance of its investment holding activities.

Revenue for the six-month period was nearly flat at RM5.76 billion compared with RM5.73 billion, as an increase in revenue across all other segments more than offset the 50% decline in the telco segment’s topline in the absence of a project.

On prospects, YTL Power said its 80%-owned Indonesian power plant project Tanjung Jati A has received a business viability guarantee letter from the Indonesian government, and it is working towards financial close.

Meanwhile its 45%-owned 554MW power plant project in Jordan is scheduled to commence operations in the middle of this year.

On its loss-making telco business, YTL Power said that with the existing network in place, it will continue to expand the telco infrastructure business and grow its subscriber base.

Shares of YTL Power closed unchanged at 72 sen, giving it a market capitalisation of RM5.87 billion.