1MDB FYE2014 Highlights
1MDB reports full year audited results for the 12 months ended 31 March 2014
1MDB announces its full year results for the twelve months ending 31 March 2014, another productive year for the group during which it secured a number of high quality energy and property assets for its growing portfolio.
The group registered a loss of RM665.3 million for the financial year largely attributable to higher finance costs of RM2.4 billion, compared with RM1.6 billion the previous financial year, as part of its strategy to grow the asset base. The value of the group’s asset base increased to RM51.4 billion, compared with RM44.6 billion the previous financial year, with borrowings increasing from RM36.2 billion to RM41.9 billion. Total revenue increased by 64%, from RM2.6 billion to RM4.3 billion, reflecting the quality of the portfolio of assets that is being built and the strength of revenue generation.
This high quality asset base is backed by strong cash and cash equivalents reserves of RM16.7 billion, with the business well positioned to fund significant capital expenditure over the next 12-24 months, and providing significant headroom to meet future funding requirements. Major areas of focus for capital expenditure in the next financial year include projects secured within the energy division and the continued development of TRX, Kuala Lumpur’s first dedicated financial district, within the group’s real estate division.
Since the end of the financial year in March 2014, 1MDB has also redeemed a total of over RM4 billion from its investments in Segregated Portfolio Companies registered in the Cayman Islands, with the balance expected to be fully redeemed by November 2014. A dividend of RM435 million, from these investments, has also been received subsequent to the financial year end March 2014 and will be accounted for in the next financial year ending March 2015.
Managing Director and Chief Executive Officer Mohd Hazem Abd Rahman said:
“We have maintained our focus on growing the company’s asset base and investment capacity. This has been driven by significant capital expenditure in the short-term, which has resulted in an expected loss this financial year due to an increase in borrowings, but we are confident that the high quality nature of the assets acquired and projects secured will drive the business forward and ensure its growth in the long-term.
1MDB explained that its accounts had been fully audited and signed by KPMG, and closed as of 31 March financial year. Deloitte was involved in the valuation and analysis of the portfolio, while Ernst & Young provided tax advice for 1MDB.
1Malaysia Development Berhad (1MDB) is a strategic development company, wholly owned by the Government of Malaysia. 1MDB was established to drive strategic initiatives for long-term economic development for the country by forging global partnerships and promoting foreign direct investment. 1MDB is currently involved several high-profile projects such as the Tun Razak Exchange, Tun Razak Exchange's sister project Bandar Malaysia and the acquisition of three Independent Power Producers.
The Sungai Besi airport land transfer took place on June 2011 will be developed as Bandar Malaysia, a mixed integrated development of commercial, residential and hi-tech green environment
1MDB is professionally managed and has a triple-tier check-and-balance system comprising a Board of Advisors, a Board of Directors and a senior management team. The Board of Advisors is chaired by the Prime Minister of Malaysia, Najib Razak.
1Malaysia Development Berhad operates as a strategic development company. The company identifies new ideas and sources of growth to propel economic transformation in Malaysia. It focuses on creating new sources of growth in various sectors, including energy, real estate, tourism, and agribusiness. 1Malaysia Development Berhad was formerly known as Terengganu Investment Authority Bhd. and changed its name in January 2009. The company was founded in 2008 and is based in Kuala Lumpur, Malaysia.
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