KUALA LUMPUR (Nov 27): Tenaga Nasional Bhd's (TNB) net profit for the third quarter ended Sept 30, 2019 (3QFY19) jumped 139% to RM1.2 billion from RM501 million a year ago, thanks to lower operating expenses and fuel costs.

In a Bursa Malaysia filing today, the national power company said operating expenses fell 8.99% to RM10.65 billion from RM11.7 billion previously.

Earnings per share rose to 21.15 sen from 8.83 sen as a result.

TNB's net profit improved despite a 3.3% dip in revenue to RM12.64 billion from RM13.07 billion in the year-ago quarter on adjustments for new regulatory guidelines that took effect in 4QFY18.

For the first nine months of FY19 (9MFY19), its net profit increased marginally to RM3.88 billion from RM3.86 billion a year ago on higher operating income and better performance in share of results of associates.

"The return on regulated business under the Incentive Based Regulation (IBR) framework which mainly consists of transmission and distribution businesses is reported at RM2.39 billion," it said.

9MFY19 revenue, meanwhile, increased 2.4% to RM38.76 billion from RM37.85 billion in the year-ago period, thanks to higher sales of electricity; however, this was offset by regulatory adjustments recognised during 3QFY19 of RM1.09 billion.

TNB expects its performance to be stable for this financial year, given that economic growth is expected to be in line with 2019 projections and sustained going into 2020, underpinned mainly by private sector activity, especially household spending.

As at 2.31pm, TNB's share price rose 22 sen to RM13.62, with 1.01 million shares traded.