Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Jan 9): Tenaga Nasional Bhd rose as much as 1.3% after analysts said the state utility might have posted a higher first quarter profit amid cheaper fuel cost.

Tenaga rose 18 sen to a high of RM14.38 before trading flat at RM14.20 at 11.41am with some three million shares transacted.

Affin Hwang Investment Bank Bhd analyst Lim Tee Yang said Tenaga was estimated to have raked in a higher core profit before tax of RM1.6 billion to RM1.65 billion in the first quarter ended November 30, 2014 (1QFY15) compared to the preceding  4QFY14.

“We do not expect any negative surprises in TNB’s (Tenaga) 1QFY15 earnings, as fuel costs should be well managed amid the stable gas supply,” Lim said in a note today.

Tenaga is expected to report its 1QFY15 financials this January 22.

Lim maintained Affin Hwang's “buy” call on Tenaga shares with an unchanged target price of RM16.50.

An earlier note by Hong Leong Investment Bhd mentioned that Tenaga was expected to benefit from the drop in coal prices below US$65 (RM231) per tonne.

“In Malaysia, TNB is the only beneficiary of lower coal price as it underwrites the price volatility of fuel input costs for the independent power producers.

"We estimated a cost savings of RM667.8 million based on TNB’s FY14 operations,” said HLIB analyst Daniel Wong.

      Print
      Text Size
      Share