TNB NETS RM1.24 B PROFIT IN Q2

Utility giant expects electricity demand to grow

TENAGA Nasional Bhd (TNB) registered a net profit of RM1.24 billion in the second quarter ended June 30 while revenue stood at RM12.5 billion. The utility giant’s board approved RM1.72 billion in interim dividend — a 50 per cent div- idend payout ratio of profit after tax and minority interests.

No quarter-to-quarter comparison was available due to the change in TNB’s financial year-end.

TNB last year changed its financial year-end from Au- gust 31 2017 to December 31 2017.

On prospects, TNB said its board expected electricity demand growth and the group’s results for this financial year to remain stable.

President and chief executive officer Datuk Seri Azman Mohd said the imbalanced cost pass-through (ICPT) review for last month to December had resulted in ICPT surcharge of 1.35 sen per kilowatt hour.

This marked the first time a surcharge was passed through to customers, demonstrating the successful implementation and continuation of the overall incentive based regulation (IBR) framework, he said in a statement.

The government decided that the surcharge for domestic and residential customers for last month to December would be funded via Kumpulan Wang Industri Elektrik in order not to burden the people.

Azman said IBR framework had provided greater transparency in tariff setting to customers.

“The ICPT mechanism, which is part of the framework, determines either a surcharge or a rebate to customers every six months, particularly depending on the market-driven coal prices, being the main fuel in generating electricity.”

The ICPT mechanism was designed to reflect the true price of electricity in order to promote economic, social and environmental sustainability for the country, said Azman.