Khazanah’s value grew 19% to RM103.5b in 2013

by **Cals** Thu 12 Jun 2014, 02:52

Business & Markets 2014

Written by Shalini Kumar of theedgemalaysia.com

Wednesday, 11 June 2014 10:13

KUALA LUMPUR: State investment arm Khazanah Nasional Bhd’s net worth adjusted (NWA) increased 19.1% to RM103.5 billion as at Dec 31, 2013 from RM86.9 billion a year ago, primarily driven by

Telekom Malaysia Bhd, Axiata Group Bhd, UEM Group Bhd, Tenaga Nasional Bhd, CIMB Group Bhd, and the healthcare sector.

It posted a pre-tax profit of RM3.1 billion for the year ended Dec 31, 2013 (FY13), a 48% increase from 2012’s RM2.1 billion.

Revenue for 2013 totalled RM7.6 billion, out of which RM6.6 billion was dividend income, said Khazanah in a statement following the release of its reports titled The Khazanah Report 2013 and The GLC Transformation Programme Progress Review 2014 at Invest Malaysia 2014 yesterday.

“Cumulative pre-tax profit, taxes paid and dividends, declared over the period of May 2004 to end-2013, amounted to RM19.1 billion, RM1.2 billion and RM6.5 billion, respectively,” it said.

According to The Khazanah Report 2013, the fund’s realisable asset value increased 11.1% to RM135.1 billion in 2013, from RM121.5 billion in 2012. Last year, it made a total of 14 investments valued at RM6.7 billion and six divestments for a gain of RM682 million.

In its second report The GLC Transformation Programme Progress Review 2014, Khazanah said the G20 market capitalisation tripled to RM425 billion on May 16, 2014, from RM140 billion on May 14, 2004. Meanwhile, total shareholder returns grew 13.4% per year over the same period.

G20 is a selection of large government-linked companies (GLC), controlled by government linked investment companies under the GLC Transformation Programme and is used as a proxy for performance of the GLCs. While the original list started with 20 GLCs, it now comprises 17 companies due to mergers, demergers and other corporate execises.

“G20 net profit grew at a compound annual growth rate of 11.1% from FY2004 to FY13, moderating to RM25.6 billion ... and is expected to reach a new high of RM27.1 billion in FY14,” it said in a separate statement.

“Meanwhile, G20 delivered a return on equity of 12% in FY13 and achieved an economic profit of RM2.6 billion in the same year, up RM8.4 billion from an economic loss of RM5.8 billion in FY05,” it added.

This article first appeared in The Edge Financial Daily, on June 11, 2014.