Tenaga Profits are on the climb

The improved performance was mainly attributed to a RM750 million fuel cost compensation, a lower coal price and steady

electricity demand.

Tenaga Nasional Bhd (TNB) has posted a net profit of RM1.0 billion for the fourth quarter ended August 2012, bettering a net

loss of RM322.5 million in the comparable quarter a year ago.

The improved performance was mainly attributed to a RM750 million fuel cost compensation, a lower coal price and steady

electricity demand.

Revenue in the fourth quarter climbed 1.6 per cent to RM9.3 billion from RM9.1 billion in the comparable quarter, helped by

the strengthening of the ringgit against the yen and the US dollar by 1.6 per cent and 1.3 per cent respectively.

For its full financial year ended August, the utility giant made a net profit of RM4.2 billion, a more than fourfold increase

from RM964.5 million in the previous year.

Revenue for the year climbed 11 per cent to RM35.8 billion against RM32.2 billion a year ago.

The financial results are slightly better than estimates of RM35 billion and RM4 billion in revenue and net profit

respectively by 19 research houses compiled by Bloomberg.

TNB president and chief executive officer Datuk Azman Mohd said electricity demand in the next few months is expected to be

stable until it picks up again after Chinese New Year.

“The gas situation is expected to be manageable by the first quarter of next year. However, we may burn more oil and

distillates should demand pick up at a time when coal plants need maintenance … so we are monitoring the situation,” Azman

said at a media briefing after unveiling TNB’s 2012 financial performance at its headquarters here yesterday.

TNB’s gas-fired plants are supposed to receive steady natural gas supply by September from Petroliam Nasional Bhd (Petronas)

regassification plant in Sungai Udang, Malacca.

But supply has been delayed and rescheduled to a new target date in the first quarter of next year.

Petronas has not provided reasons behind the delay.

Due to the shortage and irregular gas supply for the past two years, TNB has resorted to burning costlier oil and distillates

amounting to a total of RM4.7 billion, of which the cost will be shared equally among TNB, Petronas and the government.

Up to August this year, the group received a total of RM3.1 billion in compensation from Petronas and the government, with

another RM40 million still pending.

Azman said depending on the electricity and gas supply situation, there is a possibility that the utility group will burn more

oil and distillates in the next few months.

Meanwhile, TNB chairman Tan Sri Leo Moggie said the price of coal is expected to be stable at below US$100 (RM306) a tonne and

electricity demand is expected to be between four per cent and five per cent in the next few months, in line with the

country’s gross domestic product growth forecast for this year.

For the financial year ended August, the group’s directors have recommended a final single-tier dividend of 15 sen per

ordinary share (in 2011 there was no dividend paid out), which represents 51 per cent of its free cash flows.

On Bursa Malaysia yesterday, TNB shares settled one sen lower to RM6.95 with 5.3 million units traded.

Read more: Tenaga profit swells to RM1b in Q4

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