KUALA LUMPUR — Jan. 18, 2018: Khazanah Nasional has reported an 84.7 per cent jump in pre-tax profit to RM2.89 billion last year.
The fund’s portfolio net worth adjusted (NWA) rose by 13.2 per cent to a record RM115.6 billion in 2017 from RM102.1 billion the previous year.
The better performance was driven by better contributions from core portfolio companies.
“Our core portfolio companies delivered several major achievements and milestones in 2017, including Tenaga Nasional, which increased its dividend policy to between 30 and 60 per cent from 30 per cent previously,” Managing Director Tan Sri Azman Mokhtar told reporters at Khazanah’s annual review 2017 today.
Khazanah has also declared dividends of RM1 billion for 2017, bringing the cumulative dividends declared since 2004 to RM10.11 billion.
It also made 14 discrete new investments totalling RM6.3 billion last year and 12 divestments which provided proceeds of RM6.4 billion with gains from divestments totalling RM2.5 billion.
From 2004 to 2017, Khazanah made 175 investments worth RM87.9 billion and 102 divestments with proceeds amounting to RM59.2 billion and overall gains on divestments totalling to RM27.4 billion.
Going forward, Khazanah will continue to invest in growth companies, especially in the innovation and technology sector, while at the same time harvesting value through strategic divestments.
Currently, according to Azman, the media and communications sector is the largest sectoral exposure of Khazanah, consisting of 17 per cent of its total investments, followed by financial services (16.9 per cent), power (15.9 per cent), healthcare (13.8 per cent), property (nine per cent) and transportation and logistics (six per cent) while innovation and technology made up of only five per cent of the total investments.
This year will also see the rollout of Transformation 2.0, a five-year initiative aimed at raising performance and value creation initiatives,including the adoption of innovation, disruption and entrepreneurship in company cultures to improve the resilience of investee companies.
The initiative to be soft-launched tomorrow is the continuity of the previous Government-Linked Companies (GLC) Transformation programme which ended in 2015 and is targeting to deliver higher total shareholder returns (TSRs) from the previous programme which was already being considered a success. — Bernama