Friday 29 Mar 2024
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KUALA LUMPUR (Jan 24): Tenaga Nasional Bhd's (TNB) net profit for the first financial quarter ended Nov 30, 2016 (1QFY17) dropped 11.9% to RM1.74 billion or 30.79 sen per share from RM1.98 billion or 35.01 sen per share a year ago due to the strengthening of the US dollar against the ringgit.

The utility group's 1QFY17 revenue, however, came in higher at RM11.24 billion amidst higher electricity consumption, up 5.3% from RM10.68 billion a year ago, according to a filing to Bursa Malaysia this evening.

TNB's sale of electricity was up 3%. The sales in Peninsular Malaysia grew 3.5% compared with the last corresponding period.

In a media statement, TNB pointed out that its adjusted profit after tax for 1QFY17, without taking into account the impact of forex translation and reinvestment allowance incentive, was at RM1.69 billion, compared to RM1.63 billion in the previous corresponding period.

TNB said it will continue to invest in capital expenditure (capex) that will ensure the nation's energy capacity requirement is met and overall system efficiency, security and reliability are maintained.

"Currently, there are three generation projects, namely Manjung 5, Jimah East Power and Tembat with over 3,000 megawatt capacities being carried out.

"These projects are due to be completed between 2017 and 2019 and its capex investment represented 45.4% of the group's total capex investment of RM2.07 billion in 1QFY17," the group said.

On Oct 19 last year, TNB made the first issuance of the international sukuk amounting to US$750 million (RM3.3 billion) from its multicurrency sukuk programme.

TNB president and chief executive officer Datuk Seri Azman Mohd said the sukuk issuance saw the utility securing the lowest ever 10-year coupon rate achieved by a Malaysian corporate at 3.24%.

"This exhibits the confidence that the global markets have on TNB and thus, enable TNB to further tap into the liquidity of international markets to fund for future growth, especially into the global markets.

"We are confident of TNB's prospects for future growth and more importantly, of its potential to provide shareholders with greater shareholder value through our aspiration of becoming a Domestic and Regional Champion or DRC.

"However, we are mindful of the prevailing challenges and risks in the current economic landscape, topics that are currently widely debated globally," he said in the statement.

TNB's share price has recouped some losses of late. The utility stock rebounded from recent low of RM13.60 on Dec 28 to a high of RM14 on Jan 11. It closed at RM13.88 today, down two sen, with a market capitalisation of RM78.45 billion.

 

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