TNB’s pre-tax profit soars to RM8.28 billion in FY17

KUALA LUMPUR: Tenaga Nasional Bhd’s pre-tax profit soared to RM8.28 billion in the financial year ended Aug 31, 2017, against the RM8.07 billion recorded in 2016.

Revenue surged to RM47.42 billion from RM44.53 billion chalked up previously, thanks to the consistent increase in the operating expenses by eight per cent or RM2.9 billion in the current year, the utility giant said in a filing to Bursa Malaysia yesterday.

Profit attributable to the company for 2017 was RM6.9 billion as compared to RM7.37 billion in the previous financial year, a decrease of 6.3 per cent.

“This was mainly due to an increase in finance costs from the new borrowings acquired during the year and an increase in deferred taxation expense due to higher capitalisation of assets,” TNB said.

In the fourth quarter, TNB recorded a higher pre-tax profit of RM2.15 billion compared with RM1.87 billion in the same quarter last year, while revenue rose to RM12.46 billion from RM11.24 billion previously.

Going forward, the company said unit electricity demand growth is expected to be stable in line with an improved economic environment.

“Continual implementation of an Incentive Based Regulation also allows better earnings predictability for TNB as fuel costs risks are mitigated. — Bernama