I read somewhere (possibly in The Edge) that the government is coming up with a scheme whereby houses can generate electricity and sell the excess capacity back to Tenaga. Will this have any impact on the future of YTLP?

Good meh, Deferred Tax  of M 442.50.

YTL Power’s net profit stood at RM625.8 million (US$178.8 mn) for the 2009 financial year over RM1,038.8 million (US$296.8 mn) for the same period last year. The decrease in net profit resulted from a one-off deferred tax charge of RM442.5 million relating to Wessex Water Limited (“Wessex Water”), the Group’s wholly-owned subsidiary in the UK, following the abolition of industrial building allowances under the UK Finance Act 2008. The said one-off deferred tax charge does not have an immediate effect on the Group’s cashflow and was recognised in compliance with the application of Accounting Standard FRS 112 Income Taxes.

Wow, Dividend paid per share for the whole year is higher than EPS. Sustainable? Look at the Net Asset Per Share drop from a year ago.

NTA dropped by 16 cents  Classic example of value destruction from the M&A activity. Revenue more than doubled but COS went up even more, causing the EPS to be diluted. All utility companies are reporting a lower COS due to lower oil prices but we went the other way round. If price of oil has not came down, I dare not imagine what would happen.

I don't like this creative accounting thingy. YTL Corp is reporting profit mainly because of the revaluation of its properties, not actual money received from doing business. Concern they are going down the destructive path Americans went thorough treating their houses as ATM machines. They have been doing this trick for the past 2 years and I got cheesed off and sold YTLCorp few weeks back. So far it has not happen to YTLP yet but you'll never know, since both belong to the same owner. Caveat emptor 

PS. Public bank and Topglove financial statements are very transparent and both won awards for transparency to investors. I think YTL should emulate them too, not just focus on CSR aka pet project of Ruth Yeoh

Well, from the operating profit, no doubt Francis is doing a good job.

However, no matter how smart a person is, he cannot fight the Act of God,  like the Changes in Taxes  . Windfall Tax for example.

Frankly,  Francis is penalised for the Sub prime issue that is seriously affecting UK. So the withdrawals of incentives seem reasonable.

There is a market talk that UK is facing more problems than US, simply bocs UK does not have the luxury to print unlimited amount of pounds.

Correct me if I am wrong.

Yeah the IBA thing should have been communicated earlier. Was googling about the IBA and seems to affect a lot of businesses in UK including factories and such. If converted to pound sterling would amount to about 75 mil pounds of deferred taxes. I think it's that high due to the retrospective nature of the tax law.

Anyway wanted to ask htt, what do you mean by "FS" in your post?

What else? SELL SELL SELL.

W Buffet 

I do not think Tax law has the retrospective effect way back to Year 1986. It could create lots of havoc.
Maybe only restrict to year 2008 and forward.

The Deferred Tax comes about because you need to depreciate let say your Ind Plants at 4% a year under the accounting rule ( over the Lifespan of an asset let say over 25 years ), but disallowed as expense for TAx Computation ( allowance abolished in year 2008 )

Which means  the diff between the two ( timing difference ) would be created under the deferred tax under the requirement of FRS 112 accounting standard  ( deferred tax treatment ).

The RT (FRS  112 ) always relates to future FS , seldom applicable for past events ( IF ANY ).

let say you defer a project now meaning it is to be carried out in the future , not related to the past in that sense.

Just guessing only cos no access to their accounts.

Correct me if I am wrong.

Investopedia explains Deferred Tax Liability
Because there are differences between what a company can deduct for tax and accounting purposes, there will be a difference between a company's taxable income and income before tax. A deferred tax liability records the fact that the company will, in the future, pay more income tax because of a transaction that took place during the current period

You mean Wessex is losing money all this while ? How could it be ?

How can such allowances not claimed for written off in the accounts as deferred tax ?

How can liability increased by M442.50 by not claiming Tax allowances ?

Mind to share ?

Look at the bright side....

Assuming total number of share to be 7 billion.....As i know total shares should be around 6.++ billion only...

442 million equal to EPS of 442 / 7000 = 6.3 sen + EPS of 0.13 So Eps for this quarter should be more than 6.43 sen per share!!! 6.43 x 4 = 25.7 sen per share annually ....

Current price RM 2.13 WHICH MEANS PER of 8.3 only !!!  
Got one question here again... where i can see the loan payment of power seraya acquisition??.... Profit before tax from power seraya 197.4 million....Is it after deducting the loan payment?

Acquisition of power seraya not complete as yet. Loan agreement to be finalised in sept 2009. Consortium of banks to finance the deal. Maybe thats why there was no provision to pay any instalment in the last quarter. The financing rate will be crucial to it's level of returns. Hopefully can strike a good deal. Senoko just completed theirs at 325 basis points. Can someone interpret that please.

Which means 3% only??!! 

Chill out guys. No point arguing over something not so important.

Anyway, YTLPOWER fans will always be fans until something drastic changes. 

This Wimax issue will tell us if YTLP is a "well managed company".

This is something I don't understand. How did Green Packet raise enough capital to roll out Wimax? Was it through borrowings, or raising equity? Why can't YTL Communications do the same? Why need to tap into YTLP's cash?

YTL POWER one of four shortlisted for Bangladesh power plant

In the re-tendering process of the Bibiyana power project, the Power Cell upon taking nearly five months on Sunday prequalified Malaysian YTL Power, a consortium of local Summit Mercantile Corporation (lead bidder) and GE Energy of the USA, consortium Meiya Power of Hong Kong (lead bidder) and local Shasha Denims and consortium CMEC (lead bidder) and Shenzen Shenwan Power of China and Asian Entach and Otobi ltd of Bangladesh.

25% chance for success

Yes u r right!

Been buying bank shares and have no idea everytime I guy it will dropped significantly on the next day. damn it..

Well all the best in playing shares!

Sounds like they partner to kill one enemy first.

Afterwhich, they fight among themseves.

the current trend is unity first, fight later.

i have raised a question on the payment of seraya power loan. Is it due to the loan payment? But we cannot see it from this report. Seraya power financial report? How can we see the amount for the loan payment?

I don't think it means must pay everything on that day itself. As I remember reading they already paid 300 mil when the syndication of the loan was finalized. So I think it is just that the settlement must be done before 2012.

---

Added on November 20, 2009, 11:19 am

Uhmm you worried about the dividends or something else in those words?

As long as it doesn't say its "final" dividend, we should be ok.