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It posts first quarterly net profit of RM2.8bil after three consecutive quarters in the red
PETALING JAYA: Tenaga Nasional Bhd (TNB) has posted its first quarterly profit after three consecutive quarters in the red.
For its second quarter ended Feb 29, the national utility recorded a net profit of RM2.82bil, almost 340% higher than RM641.1mil in the corresponding quarter last year.
This was largely because of a RM2.02bil compensation paid to it by the Government and Petroliam Nasional Bhd (Petronas) under a cost-sharing mechanism agreed to last year, following a shortfall in gas supply which crippled TNB's electricity generation and forced it to spend RM2.1bil to burn costly oil and distillates.
Excluding the compensation, TNB's net profit was RM1.3bil for the second quarter versus a net loss of RM224.7mil in the quarter before.
Revenue for the quarter rose 17% to RM8.63bil from RM7.37bil a year earlier, while earnings per share was 51.59 sen compared with 11.6 sen previously.
In the first half, its net profit surged 76.2% to RM2.59bil from RM1.47bil. Revenue was 14.7% higher at RM17.32bil against RM15.1bil last year on the back of a 4.1% increase in electricity sales in Peninsular Malaysia and a tariff hike last June.
For its financial year ending Aug 31, the company expects electricity demand to grow 4% to 5%.
It has also approved an interim dividend of 5.09 sen per ordinary share less income tax of 25%.
At a press conference to announce the results, president and chief executive Datuk Seri Che Khalib Mohd Noh said the RM2.02bil compensation would only cover the extra cost used to burn oil and distillates between Jan 2010 and Oct 2011, and the costs incurred after that till September this year would be shared equally betweenTNB, the Government and Petronas.
“(Gas) volume has improved so we didn't burn any oil and distillates in January. As of today, RM465mil has been spent to burn gas alternatives. If you assume that same number continues, (the total additional costs till September) will hopefully not be more than RM1bil,” he said.
Chairman Tan Sri Leo Moggie added: “The Government has decided that additional cost would continue to be shared equally, but it would depend on the actual amount to be used. Obviously we can't tell what those figures now, but the indication is that it would be much less than last year.”
Source: Star
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