Annual Report 2014
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YTL POWER INTERNATIONAL BERHAD YTL POWER INTERNATIONAL 406684-H YTL POWER INTERNATIONAL BERHAD 406684-H 11th Floor Yeoh Tiong Lay Plaza YTL 55 Jalan Bukit Bintang 55100 Kuala Lumpur POWER Malaysia INTERNATIONAL Tel • 603 2117 0088 BERHAD 406684-H 603 2142 6633 Fax • 603 2141 2703 www.ytlpowerinternational.com www.ytlcommunity.com the journey continues... annual report 2014 annual report 2014 Contents Corporate 002 Financial Highlights 030 Nominating Committee Statement Review 004 Chairman’s Statement 033 Statement on Corporate Governance 012 Corporate Events 037 Statement on Risk Management & 014 Notice of Annual General Meeting Internal Control 018 Statement Accompanying Notice of 041 Disclosure of Recurrent Related Party Annual General Meeting Transactions of a Revenue or Trading Nature 019 Corporate Information 044 Analysis of Share/Warrant Holdings 020 Profile of the Board of Directors 048 Statement of Directors’ Interests 025 Statement of Directors’ Responsibilities 053 Schedule of Share Buy-Back 026 Audit Committee Report 054 List of Properties Financial 056 Directors’ Report 076 Statements of Cash Flows Statements 069 Income Statements 079 Notes to the Financial Statements 070 Statements of Comprehensive Income 181 Statement by Directors 071 Statements of Financial Position 181 Statutory Declaration 073 Consolidated Statement of Changes in 182 Independent Auditors’ Report Equity 075 Company Statement of Changes in • Form of Proxy Equity YTL POWER INTERNATIONAL BERHAD (406684-H) YTL Power International Berhad Financial Highlights 2014 2013 2012 2011 2010 (restated) (restated) Revenue (RM’000) 14,436,606 15,896,162 15,870,343 14,662,559 13,442,917 Profit Before Taxation (RM’000) 1,126,594 1,315,415 1,391,476 1,556,906 1,684,915 Profit After Taxation (RM’000) 1,208,747 1,029,883 1,156,961 1,247,462 1,208,712 Profit for the Year Attributable to 1,202,414 1,054,770 1,232,211 1,364,168 1,208,838 Owners of the Parent (RM’000) Total Equity Attributable to Owners 10,439,494 9,809,073 8,981,768 8,335,475 7,210,066 of the Parent (RM’000) Earnings per Share (Sen) 18.30 14.54 16.99 18.93 18.60 Dividend per Share (Sen) – 1.88 5.64 9.39 13.13 Total Assets (RM’000) 40,085,106 38,910,167 38,946,755 35,245,784 33,918,933 Net Assets per Share (RM) 1.54 1.38 1.24 1.15 1.00 002 Annual Report 2014 Financial Highlights 1,684,915 1,247,462 1,208,747 1,208,712 1,156,961 1,556,906 15,870,343 15,896,162 14,662,559 1,029,883 1,391,476 14,436,606 1,315,415 13,442,917 1,126,594 Profit Profit Before After Revenue Taxation Taxation (RM’000) (RM’000) (RM’000) 10 11 12 13 14 10 11 12 13 14 10 11 12 13 14 18.93 18.60 18.30 16.99 1,364,168 14.54 10,439,494 9,809,073 1,232,211 1,208,838 1,202,414 8,981,768 Profit for Total 8,335,475 1,054,770 the Year Equity 7,210,066 Attributable Attributable to Owners to Owners of the of the Earnings Parent Parent per Share (RM’000) 10 11 12 13 14 (RM’000) 10 11 12 13 14 (SEN) 10 11 12 13 14 13.13 1.54 1.38 1.24 9.39 40,085,106 38,946,755 1.15 38,910,167 35,245,784 1.00 33,918,933 5.64 Dividend Total Net Assets per Share 1.88 Assets per Share (SEN) 10 11 12 13 14 (RM’000) 10 11 12 13 14 (RM) 10 11 12 13 14 003 YTL Power International Berhad Chairman’s Statement On behalf of the Board of Directors of YTL Power International Berhad (“YTL Power” or the “Company”), I have the pleasure of presenting to you the Annual Report and the audited financial statements of the Company and its subsidiaries (the “Group”) for the financial year ended 30 June 2014. OVERVIEW The Group recorded a sound set of results for the financial year under review, led by its power generation and water and sewerage operations. YTL Power’s merchant multi- utilities business in Singapore continued to perform well despite being impacted by lower vesting non-fuel margins and volumes, whilst in Malaysia, the Yes mobile Internet with voice service registered good growth of its subscriber base. TAN SRI DATO’ SERI (DR) YEOH TIONG LAY Executive Chairman 004 Annual Report 2014 Chairman’s Statement The Malaysian economy recorded gross FINANCIAL PERFORMANCE The Group continued to see good results domestic product (GDP) growth of from its power generation business in 4.7% for the 2013 calendar year, The Group registered revenue of Malaysia and water and sewerage affected by a weaker external sector, RM14,436.6 million for the financial business in the United Kingdom, with the compared to 5.6% in 2012. However, year ended 30 June 2014 compared Yes mobile broadband platform also the first half of 2014 registered stronger to RM15,896.2 million for the registering growth in subscription levels, growth of approximately 6.3%, previous financial year ended 30 June further narrowing the division’s start-up supported by higher exports and 2013, whilst profit for the financial losses in building the network for scale continued strength in private domestic year increased 17.4% to RM1,208.7 from the outset. demand. Meanwhile, in other major million this year over RM1,029.9 economies where the Group operates, million last year. Dividends the United Kingdom (UK) registered growth of approximately 1.8% during The increase in profit was contributed In line with the Group’s policy of creating 2013, with the first and second quarters mainly by the Group’s power generation, value for shareholders through a of the 2014 calendar year showing water and sewerage and mobile sustainable dividend policy, YTL Power growth of 0.7% and 0.9%, respectively. broadband divisions, although this was declared an interim dividend of 20% or Singapore’s economy grew 4.1% in impacted by lower vesting non-fuel 10.0 sen per ordinary share of 50 sen 2013 over 1.9% in 2012, although margins and volumes in the Group’s each in respect of the financial year growth had moderated to approximately merchant multi-utilities business. ended 30 June 2014, with a book closure 2.4% at the end of the second quarter Meanwhile, the decrease in revenue date of 31 October 2014 and a payment of the 2014 calendar year compared to arose mainly due to lower units of date of 14 November 2014. Therefore, 4.8% in the first quarter (sources: electricity sold coupled with lower the Board of Directors of YTL Power did Ministry of Finance Malaysia, Bank electricity prices as a result of lower fuel not recommend a final dividend for the Negara Malaysia, Singapore Ministry of oil prices in the merchant division. financial year under review. Trade & Industry, UK Office for National Statistics updates & reports). This is the 17th consecutive year that the Company has declared dividends since listing on the Main Market of Bursa Malaysia Securities Berhad in 1997. 005 YTL Power International Berhad Chairman’s Statement REVIEW OF OPERATIONS During the year under review, the Overall plant availability remained good division entered into a new steam sales Power Generation, Merchant Multi- during the year under review with agreement, for a 15-year period Utilities & Power Transmission 97.87% at Paka Power Station and commencing September 2015. YTL 98.40% at Pasir Gudang Power Station. PowerSeraya will supply up to 25 The Group’s power generation (in both Combined power production by both metric tonnes per hour of medium contracted and merchant markets), stations for the year stood at 100.35% pressure steam to its new customer. merchant multi-utilities and power of the scheduled quantities. This marks another key development transmission businesses are carried out that reinforces the division’s position as by its wholly-owned subsidiaries in Operations in Singapore an integrated energy company offering Malaysia and Singapore, and associates bundled utilities of electricity, steam in Indonesia and Australia. The Group has a 100% stake in and water. YTL PowerSeraya Pte Ltd (“YTL Operations in Malaysia PowerSeraya”) in Singapore, which Re-certifications achieved during the owns 3,100 MW of installed capacity financial year included ISO9001, YTL Power Generation Sdn Bhd, a comprising steam turbine plants, ISO14001 and OHSAS18001, in line wholly-owned subsidiary of YTL Power, combined-cycle plants and co- with the division’s dedication to is the owner of the Group’s two generation combined-cycle plants, maintaining its quality, environmental, combined-cycle, gas-fired power stations. representing about 25% of Singapore’s and health and safety management Located in Paka, Terengganu, and Pasir total installed generation capacity. systems, respectively. The company Gudang, Johor, the stations have a total also received ISO27001 certification in generating capacity of 1,212 megawatts YTL PowerSeraya’s overall market share December 2013 as part of its mitigation (MW) – 808 MW at Paka Power Station for the financial year stood at 20.5% measures against cyber security threats. and 404 MW at Pasir Gudang Power with 9,350 gigawatt hours (GWh) of Station. The Group has a 21-year power electricity sold, a decrease of 12.9% On the retail front, YTL PowerSeraya’s purchase agreement with Tenaga compared to last year, due mainly to retail subsidiary, Seraya Energy Pte Ltd Nasional Berhad, whilst operation and the coming on-line of new gas-fired (“Seraya Energy”), saw a slight decrease maintenance (O&M) for the Paka and combined-cycle gas turbine (CCGT) in its market share in the retail electricity Pasir Gudang power stations continues capacity across the industry, which sector to 23.3% for the financial year, to be undertaken by YTL Power Services amounted to an increase of as compared to 25.3% last year, with a Sdn Bhd, a wholly-owned subsidiary of approximately 23% over existing sales volume of 7,025 GWh.