Tenaga’s net profit rose 48 per cent to RM1 billion
Filed Under (Business News) by Webmaster on 21-04-2010
Tagged Under : Tenaga
THE country’s biggest power producer, Tenaga Nasional Bhd (TNB) (5347), registered a 48 per cent jump in its second quarter net profit, helped by a stronger ringgit and better electricity demand.
In the quarter to February 28 2010, its net profit rose to RM1 billion from RM674.6 million a year ago. Sales increased 3 per cent to RM7.39 billion.
Operating expenses were lower, due partly to cheaper coal prices, which averaged at about US$82 (RM263) per metric tonne (pmt).
However, coal prices are rising.
“We expect the average coal price for the full financial year 2010 to be more than US$90 (RM289) pmt,” TNB chief executive officer Datuk Seri Che Khalib Mohd Noh told a media briefing in Kuala Lumpur yesterday.
Still, TNB is upbeat on prospects and expects to maintain its growth momentum in the second half.
A stronger ringgit means that coal purchases and US debt repayment will be cheaper.
Electricity consumption in the country increased 8 per cent to 43,618 gigawatt-hour (Gwh) during TNB’s fiscal first half, helped by the global economic recovery.
Malaysia’s economy is expected to grow by as much as 5.5 per cent this year, after contracting 1.7 per cent last year.
In the first half, TNB saw net profit of RM1.71 billion, against net loss of RM269 million in the previous corresponding period, helped in part by foreign exchange gains.
“The strengthening of the ringgit will help us in Q3 because that will help us in terms of our debt-servicing as well as coal procurement,” said Che Khalib.
