Business

TNB posts RM1.4b net profit in first quarter

KUALA LUMPUR, Jan 23 – Electricity provider Tenaga Nasional Bhd (TNB) today posted an increased net profit of RM1.4 billion for the first quarter of financial year 2013 ending November 30, 2012.

In comparison, the net profit for the same quarter last financial year was RM0.1 billion.

The positive result was attributed to lower price of coal at US$84.4 per metric tonne, compared to US$110 per metric tonne for the same quarter the year before.

There was also a 3.5 per cent unit electricity demand growth in Peninsular Malaysia, mainly driven by the commercial sector.

TNB also received fuel cost compensation which has been recognised and restated since the third quarter of financial year 2012.

Coupled with the declining coal price, operating costs was reduced 9.6 per cent from RM8.3 billion to RM7.5 billion.

Savings in generation costs was further achieved from the strengthening of the Ringgit against the US Dollar and Japanese Yen by 2.7 per cent and 7.4 per cent respectively.

Despite the decreasing coal price, TNB remains vigilant of the availability of gas supply following the revised commissioning date of the Liquefied Natural Gas (LNG) Regasification Terminal in Sungai Udang, Melaka.

Alternative fuels such as distillates are being used to make up for the shortfall, and have resulted in higher generation costs, and adverse impact on the performance and life span of the gas power plants.

“Our plants will run shorter maintenance cycle which in the long run, (which) will adversely impact our operating expenses as well as the performance of the power plants,” TNB chairman Tan Sri Leo Moggie said.

There was also a 3.5 per cent unit electricity demand growth in Peninsular Malaysia, mainly driven by the commercial sector.

Commercial sector recorded a demand growth of five per cent while the domestic sector grew by 6.1 per cent.

Despite a projected growth of Malaysian economy in 2013, TNB remains cautiously optimistic on its outlook for the current financial year since its operating environment is yet to indicate any sustained improvement.

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